East Asia and Pacific remains the world’s growth engine despite a challenging external environment, with developing economies growing by 7.2% in 2013. The proportion of people living in poverty in the region has steadily declined—less than 10% of the population lives on $1.25 a day—but much more needs to be done as there are still close to half a billion people living on $2 a day.
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ContextUrbanization, industrialization and motorization have intensified pollution, especially in developing countries. Vehicle exhaust, untreated wastewater, nitrogen fertilizer runoff, e-waste, dirt... Show More +y fuel burning, industrial emissions and toxic waste cause debilitating and fatal illnesses, destroy ecosystems and create unsustainable—even harmful—living conditions. The world’s poor, who can’t afford to protect themselves from the negative impact of pollution, end up suffering the most.In 2012, an estimated 9 million people died from air, water and land pollution, according to the Global Alliance on Health and Pollution. Environmental factors, especially air pollution, cause 24 percent of global disease and 13 percent of deaths every year. About 95 percent of adults and children impacted by pollution-related illnesses live in low and middle-income countries. Addressing and responding to pollution issues not only results in better health for people, but also brings economic gains from increased tourism, improved transport and energy efficiency. To save lives and maintain a livable world for future generations, we must better manage current pollution sources, clean up past pollution, and find innovative solutions for cleaner urban and rural practices. Implementing policies, tools and technologies for avoiding emissions and managing existing pollution sources could save millions of lives, prevent the loss of work hours due to disease, improve business productivity and increase urban and rural competitiveness.StrategyThe World Bank Group works with developing countries and development partners to reduce pollution, implement proper waste management, improve water and air quality and promote clean development. Between 2007 and 2012, 7.7% of Bank commitments—approximately US$ 18 billion—went to activities that addressed short-lived climate pollutants (SLCPs). In 2014, the World Bank established a Pollution Management and Environmental Health (PMEH) program that will build upon experiences in urban and rural pollution reduction from around the world to promote more systematic and effective responses to rampant and deadly pollution.The Bank provides technical assistance, financing and knowledge products that cover:legacy pollution cleanup and land rehabilitation;management of different forms of waste including solid waste, industrial/e-waste, and wastewater;improving air quality through the reduction of indoor/outdoor air pollution, short lived climate pollutants and GHG emissions;improving water quality, both in freshwater and in oceans;promoting environmentally sustainable mining;helping countries improve environmental governance, regulation and enforcement.ResultsAir pollutionIn response to increased respiratory illnesses in Santiago, Chile, the Sustainable Transport and Air Quality program supported a long-term shift to more efficient and less polluting forms of urban transportation.In Bangladesh, the Bank is working to tackle pollution from the country’s two biggest polluters: brickfields and transport. To date, 11 stations have been installed in eight cities to monitor air pollutants and generate real time air quality data.More results:Curbing air pollution in Ulan BataarCleaner cookstoves for a Healthier IndonesiaCutting Short-Lived Climate PollutantsLand PollutionIn Africa, a $25 million program has removed over 3,000 tons of obsolete and dangerous pesticides from close to 900 contaminated sites in Ethiopia, Mali, Tanzania, Tunisia and South Africa.In Belarus, the Bank worked with the Ministry of Natural Resources and Environmental Protection to develop its capacity to treat and dispose of hazardous waste. The Bank supported a massive cleanup operation at the Slonim burial site, which excavated and disposed of up to 1750 tons of toxic obsolete pesticides.More results:Argentina Solid Waste ManagementCleaning up Uranium in ArgentinaKosovo Energy Sector Cleanup and Land ReclamationRidding Moldova of Toxic ChemicalsSolid Waste Management in IndonesiaWater pollutionIn China, the Bank helped the government establish integrated management of water resources and the environment in the Hai Basin. Between 2004 and 2011, the project reduced wastewater discharge, cleaned over 6 million m3 of polluted sediment from the Dagu Canal, and improved living conditions for millions of people. Also in China, the Bank helped improve water and wastewater services for residents in Ningbo by financing investments in a water intake tower and tunnel, water treatment plant, water transmission pipes, sewers and pumping stations, greatly reducing pollution loads discharged into Hangzhou Bay.In Vietnam, the Bank supported the clean-up of the Nhieu Loc-Thi Nghe canal, creating more sanitary living conditions for 1.2 million people.More results:Kazakhstan Nura River Cleanup ProjectControlling pollution in Croatia’s Coastal WatersWastewater treatment and landfills ease pollution in China’s Yangtze River Show Less -

Bank Group ContributionThe World Bank funding for water resources management amounted to about US$8.08 billion across projects approved during fiscal years 2004-2013. In FY11 as well as FY12, Wo... Show More +rld Bank funding for water resources management amounted to US$1.2 billion; in FY13, it amounted to US$ 800 million.PartnersThe Bank collaborates with partners to support innovation in integrated water resources management. Given the broad reach of water resources management needs and initiatives, this type of collaboration has been significant.The World Bank strengthens the quality of its water projects through additional support from Global Partnership Programs.The Bank’s Water Partnership Program (WPP), a multi-donor trust fund, contributes to the Bank’s efforts to reduce poverty by bolstering operational and analytical work through the mainstreaming of pragmatic approaches for water resources management and water supply and sanitation service delivery. Under its first phase (2009-2012), the program helped influence almost US$11.7 billion in Bank financing and secured access to improved water and sanitation services for more than 50 million people. Under the WPP's second phase (2013-2016) more than $40 million will be committed to tackling water challenges by working at the nexus of food, energy and water security, and by supporting paths to climate-resilient, green growth.Significant amounts of water are needed in almost all energy generation processes. Conversely, the water sector needs energy to extract, treat and transport water and both energy and water are used in the production of crops. To support countries’ efforts to address chal­lenges in energy and water management proactively, the World Bank with the support of WPP has embarked in 2013 on a global initiative: Thirsty Energy. The initiative aims to help governments prepare for an uncertain future, and break disciplinary silos that prevent cross-sectoral planning. Thirsty Energy demonstrates the importance of combined energy and water management approaches through demand-based work in several countries, thus providing examples of how evidence-based operational tools in resource management can enhance sustain­able development.Next to innovative and often integrated water services solutions, WPP activities take a comprehensive approach to water resources, working at the river basin, delta, or country level to assess and define the best strategies for sustainable management. The program’s Water Expert Team (WET), which mobilizes high-level global expertise to meet complex and urgent demand, also devotes two-thirds of its support to World Bank water resources management programs that focus on improved decision making for disaster risk management and uncertainty under natural water variability and climate change impacts.Established in 2009, the South Asia Water Initiative (SAWI) is a multi-donor partnership between the World Bank and the governments of United Kingdom, Australia and Norway. The overarching objective of SAWI is to: increase regional cooperation in the management of the major Himalayan river systems in South Asia to deliver sustainable, fair and inclusive development and climate resilience. SAWI supports activities related to the management of the Greater Himalayas transboundary water systems in Afghanistan, Bangladesh, Bhutan, China, India, Nepal, and Pakistan. The key rationale for engagement is to demonstrate and then to help achieve the mutual benefits of cooperation across shared river basins.Cooperation in International Waters in Africa (CIWA) aims to support and assist riparian governments in Africa to work together to address and unlock the constraints on growth and development posed by international waters. Specifically, it focuses on strengthening regional cooperation, water resources management and development, and stakeholder engagement and coordination by enabling greater voice and accountability. The program is supported by Development Partners, including the UK, Denmark and Norway.In March 2011, the World Bank signed a Memorandum of Understanding with the United States government to expand and enhance collaboration in the water sector. The Bank is working in close cooperation with 16 U.S. agencies to support developing countries in managing global water crises, such as the lack of safe drinking water and sanitation, diminishing aquifers, drought, flooding, and climate change impacts.Moving ForwardContinuous Bank leadership and strengthened support will be critical to secure the above achievements and increase the benefits to poverty alleviation and sustainable development. The World Bank is currently developing a new vision for water that strengthens the water practice to deliver on the bold leadership aspirations and meet changing client need. The vision places water at the center of helping people, economies and ecosystems thrive and thus contributing to a world free of poverty. Moving forward the Bank will:Strengthen efforts to address climate variability in Bank-financed projects through improved storage and other adaptation measures, flood control, and emergency response preparednessDevote more resources to explore and strengthen the linkages between water and other sectors such as energy, agriculture and the environment, and support initiatives that aim at improving water allocation mechanisms and institutionsEnsure that water considerations are included in country-sectoral planningImprove efficiency of water supply systemsEnsure that the food security agenda considers irrigation and work with clients to improve water efficiency of existing irrigation schemesStrengthen the use and supply of data for decision making and dialogue between countries, and facilitate the integration of technologies for more reliable informationContinue its strong support to institutional reform and capacity building of relevant organizations, and strengthen global water partnerships for lasting impact BeneficiariesIt is something Arwa Mohamed remembers well. When it rained, the floodwaters in the streets in her Taiz neighborhood in Yemen were so high people were stuck for days “When it would rain and the kids were in school, we were afraid, because the floods would come and cut off the streets, and whoever was home - the mothers - would wait by the windows to see their children coming, and scream out ‘don’t try to cross, it is dangerous.’ The flood once even swept away an old woman and her grandchild.” Finally, says Arwa, “her neighborhood is safe.” The rain waters still come, but now travel underneath her neighborhood, instead of through it, by way of a covered channel. “Now we have these nicely paved streets, and we can cross even during floods, but before, we were completely cut from life when it rained, see what I mean?”Shawki Ahmed Hayel Saeed, Taiz Local Council and businessman “It was not only the improvements of solving the problems of the water flooding that happened in Taiz in the last few years, but it was also for the additional contracts that were implemented in these projects, for paving and asphalting a lot of streets in the city, employing a lot of people, and also helping the local council in training and improving the revenues for the people’s participation in the project in Taiz.”For 28-year old grocer, Amin Jibari, the project has finally brought security to his basement home “ no more, everything now is good, after they built the channel and a protection wall, the floods don’t come here, we are relaxed, no flooding!” Amin says since the construction of a covered channel nearby, he and his family of five are no longer in danger! 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LONDON, September 24, 2013 —A new World Bank and IFC report finds legal and regulatory barriers to women’s economic inclusion have decreased over the past 50 years globally, but many laws still ... Show More +hinder women’s participation in the economy. Laws restricting women’s economic activity are currently most prevalent in the Middle East and North Africa, Sub-Saharan Africa and South Asia.The third in a series, Women, Business and the Law 2014: Removing Restrictions to Enhance Gender Equality monitors regulations affecting women entrepreneurs and employees in 143 economies. This edition highlights reforms carried out over the past two years, examines the evolution of women’s property rights and legal decision making ability since 1960 and expands coverage to examine legal protections addressing violence against women.“The ideal of equality before the law and equality of economic opportunity isn’t just wise social policy: It’s smart economic policy,” said World Bank Group President Jim Yong Kim. “When women and men participate in economic life on an equal footing, they can contribute their energies to building a more cohesive society and a more resilient economy. The surest way to help enrich the lives of families, communities and economies is to allow every individual to live up to her or his fullest creative potential.”“Our latest edition of Women, Business and the Law shows that many societies have made progress, gradually moving to dismantle ingrained forms of discrimination against women,” said Kim. “Yet a great deal remains to be done.”This report finds 44 economies have made 48 legal changes, thus increasing women’s economic opportunities over the past two years. Côte d’Ivoire, Mali, the Philippines and the Slovak Republic had the most reforms. Among the reforms, husbands can no longer unilaterally stop their wives from working in Côte d’Ivoire and Mali, the Philippines has lifted restrictions on night work for women, and the Slovak Republic increased the percentage of wages paid during maternity leave.The report finds economies in Eastern Europe and Central Asia have the most extensive lists of jobs women cannot do. For example, in the Russian Federation women cannot drive trucks in the agricultural sector, in Belarus they cannot be carpenters and in Kazakhstan they cannot be welders. These restrictions may have arisen from a desire to protect women, but can limit their employment options. The report shows economies with the most job restrictions on women have lower female participation in the formal labor force."Progress on gender equality under the law is accelerating," said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “Our data shows that over the past 50 years countries everywhere have started removing long-standing restrictions on women's ability to participate more fully in the economy. Although the progress has been uneven across the world, there is widespread recognition that the economic empowerment of women is crucial for competitiveness and prosperity."Between 1960 and 2010, more than half the restrictions on women’s property rights and ability to conduct legal transactions were removed in the 100 economies examined. Restrictions in three regions – Sub-Saharan Africa, Latin America and the Caribbean, and East Asia and the Pacific – were cut in half. While some restrictions were removed in South Asia and in the Middle East and North Africa, these two regions reformed the least.Another major innovation in the report is new data on the existence and scope of laws on two areas of violence against women: sexual harassment and domestic violence. Covering 100 economies, the data show that prohibitions against sexual harassment in the workplace are widespread – 78 economies have legislation and over half of these criminalize the behavior. Legislation on domestic violence is also widespread –76 economies have laws prohibiting domestic violence. The region with the fewest laws on domestic violence is the Middle East and North Africa.The report shows lower gender legal parity is associated with fewer women participating in firm ownership, while policies encouraging women to join and remain in the labor force are associated with greater income equality. Even though the report offers signs of improvement for women’s economic opportunities globally, it shows economies can do more to ensure women’s participation in economic life.About the Women, Business and the Law Report series:Women, Business and the Law measures how laws, regulations and institutions differentiate between women and men in ways that may affect women’s incentives or capacity to work or to set up and run a business. It analyzes legal differences on the basis of gender in 143 economies, covering six areas: gaining access to institutions, using property, getting a job, providing incentives to work, building credit, and going to court. The project provides a clear picture of gender gaps based on legal differences in each economy, but it does not capture the full extent of the gender gap, nor does it indicate the relative importance of each aspect covered. This year’s report was published by Bloomsbury Publishing.About the World Bank GroupThe World Bank Group is one of the world’s largest sources of funding and development expertise for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in pursuing the World Bank Group’s mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. Show Less -

Washington, D.C., October 23, 2012—Local entrepreneurs in developing countries are finding it easier to do business than at any time in the last 10 years, highlighting the significant progress that ha... Show More +s been made in improving business regulatory practices across the globe, according to a new report released today by the World Bank and IFC.The report, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises, marks the 10th edition of the Doing Business series. Over the past decade, these reports have recorded nearly 2,000 regulatory reforms implemented by 180 economies. The reforms have yielded major benefits for local entrepreneurs across the globe. For example:Since 2005, the average time to start a business has fallen from 50 days to 30—and in low-income economies the average has been reduced by half.In the past eight years, the average time to transfer property fell by 35 days, from 90 to 55, and the average cost by 1.2 percentage points—from 7.1 percent of the property value to 5.9 percent.In the past eight years, improvements to simplify tax compliance have reduced the time required annually to comply with the three major taxes measured (profit, labor, and consumption taxes) by 54 hours on average.“Over the years, governments have made important strides to improve their business regulatory environment and to narrow the gap with global best practices,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “While the reforms we measure provide only a partial picture of an economy’s business climate, they are crucial for key economic outcomes such as faster job growth and new business creation.”In the past year alone, 108 economies implemented 201 regulatory reforms that made it easier for local entrepreneurs to do business, the report found. Eastern Europe and Central Asia had the largest share of economies implementing regulatory reforms—with 88 percent reforming in at least one of the areas measured by Doing Business. European economies in fiscal distress are working to improve business regulation as part of an effort to establish a stronger foundation for long-term growth, the report found.Singapore topped the global ranking on the ease of doing business for the seventh consecutive year. Joining it on the list of the top 10 economies with the most business-friendly regulation were Hong Kong SAR, China; New Zealand; the United States; Denmark; Norway; the United Kingdom; the Republic of Korea; Georgia; and Australia.Topping the list of economies that registered the biggest improvements in the ease of doing business over the last year were Poland, Sri Lanka, Ukraine, Uzbekistan, Burundi, Costa Rica, Mongolia, Greece, Serbia, and Kazakhstan. About the Doing Business report series Doing Business analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and protecting investors. The aggregate ease of doing business rankings are based on 10 indicators and cover 185 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 10th edition of the global Doing Business report series. For more information about the Doing Business report series, please visit www.doingbusiness.org. Join us on Facebook. About the World Bank GroupThe World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. Show Less -

Washington, October 1, 2012 -- In developing countries, jobs are a cornerstone of development, with a pay off far beyond income alone. They are critical for reducing poverty, making cities work, and p... Show More +roviding youth with alternatives to violence, says a new World Bank report. The World Development Report 2013: Jobs stresses the role of strong private sector led growth in creating jobs and outlines how jobs that do the most for development can spur a virtuous cycle. The report finds that poverty falls as people work their way out of hardship and as jobs empower women to invest more in their children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and as less productive ones disappear. Societies flourish as jobs foster diversity and provide alternatives to conflict. “A good job can change a person’s life, and the right jobs can transform entire societies. Governments need to move jobs to center stage to promote prosperity and fight poverty,” says World Bank Group President Jim Yong Kim, "It's critical that governments work well with the private sector, which accounts for 90 percent of all jobs. Therefore, we need to find the best ways to help small firms and farms grow. Jobs equal hope. Jobs equal peace. Jobs can make fragile countries become stable." The report’s authors highlight how jobs with the greatest development payoffs are those that raise incomes, make cities function better, connect the economy to global markets, protect the environment, and give people a stake in their societies. “Jobs are the best insurance against poverty and vulnerability,” says Kaushik Basu, World Bank Chief Economist and Sr. Vice President, “Governments play a vital enabling role by creating a business environment that enhances the demand for labor.” The global economic crisis and other recent events have raised employment issues to the center of the development dialogue. The WDR authors, who processed over 800 surveys and censuses to arrive at their findings, estimate that worldwide, more than 3 billion people are working, but nearly half work in farming, small household enterprises, or in casual or seasonal day labor, where safety nets are modest or sometimes non-existent and earnings are often meager. “The youth challenge alone is staggering. More than 620 million young people are neither working nor studying. Just to keep employment rates constant, the worldwide number of jobs will have to increase by around 600 million over a 15-year period”, says Martin Rama, WDR Director. But in many developing countries, where farming and self-employment are prevalent and safety nets are modest at best, unemployment rates can be low. In those places, most poor people work long hours but cannot make ends meet. And the violation of basic rights is not uncommon. Therefore, the quality and not just the number of jobs is vitally important.The Report advances a three-stage approach to help governments meet these objectives: First, solid fundamentals – including macroeconomic stability, an enabling business environment, human capital, and the rule of law- have to be in place. Second, labor policies should not become an obstacle to job creation, they should also provide access to voice and social protection to the most vulnerable. Third, governments should identify which jobs would do the most for development given their specific country context, and remove or offset obstacles to private sector creation of such jobs.Understanding the particular jobs challenge for a given region or country is essential. Differences in the structure of employment across regions, across genders, and across age groups are striking. For example, 6 out of 7 workers in Eastern Europe and Central Asia are wage earners, but 4 out of 5 workers in Sub-Saharan African are farmers or self-employed. Many more women than men are in non-wage work in low- and lower-middle income countries. Meanwhile, in middle-income countries women are more likely to be wage workers, though too often they earn less than men. Policy priorities are different in agrarian societies and in urbanizing countries. Making smallholder farming more productive is key in the first case, while better infrastructure, connectivity, housing, and city planning are vital in the second. Demography matters too. In Sub-Saharan Africa, 10 million youth enter the labor force every year, but in many middle-income countries the population is aging and in some the labor force is shrinking. Skills and the removal of privilege in access to markets and jobs are needed to tackle youth unemployment. But longer working lives and affordable social protection are needed in aging societies. Focusing on the key features of different country types can help identify more clearly the kinds of jobs that would make the greatest contribution to development in each case. This focus allows for an analysis of the potential tradeoffs between living standards, productivity, and social cohesion in a specific context. It provides clues about the obstacles to job creation and, ultimately, the priorities for policy makers as they identify the most important constraints to job creation and how to overcome them.Policy makers should tackle these challenges by answering such questions as: Should countries build their development strategies around growth, or should they focus on jobs? Can entrepreneurship be fostered, especially among microenterprises in developing countries, or are entrepreneurs born? Are greater investments in education and training a prerequisite for employability, or can skills be built through jobs? Amidst crises and structural shifts, should jobs, not just workers, be protected? Jobs agendas at the country level are connected by the migration of people and the migration of jobs. Policies for jobs in one country can thus have spillovers on other countries – both positive and negative. The report explores whether international coordination mechanisms, such as bilateral migration agreements, could enhance the positives and mitigate the negatives. ”To move jobs center stage, we also need reliable country-level data that is disaggregated and covers more than urban or formal sector jobs,” says Rama. The World Bank Group fosters job growth through its two main channels of support to the developing world -- the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) -- as well as through the IFC and the Multilateral Investment Guarantee Agency. Assistance comes in the form of policy advice, support for private sector development plus loans and programs to advance urbanization, infrastructure and human development (including social protection). Show Less -

The 2015 Annual Meetings of the World Bank Group and the International Monetary Fund will take place in Lima, Peru, in October 2015, following a vote by the Boards of Governors of the two institutions... Show More +. The Annual Meetings—which bring together ministers of finance and central bank governors from the institutions’ 188 member countries—provide a unique opportunity for a broad dialogue on issues of global economic importance. They serve to discuss international economic and financial developments, the state of the global economy, and policies to reduce poverty and promote inclusive economic growth. The Annual Meetings also provide a forum for civil society, the private sector, academics and others to engage in discussions on economic issues.The last time the Annual Meetings were held in Latin America was in 1967 in Rio de Janeiro, Brazil. Show Less -

Washington, September 13, 2012 – It is time to rethink the role of the state in the financial sector, so that governments can better balance the need for credit and emergency support for banks with me... Show More +asures to promote transparency and competition when crises erupt, says a new World Bank report.“Governments need to provide strong supervision and ensure healthy competition in the financial sector. They also need to support financial infrastructure, such as better quality credit information that is shared more systematically,” says World Bank Group Managing Director Mahmoud Mohieldin. "But the mixed results of their direct role in issuing credits merits close examination. Indeed, as we emerge from the global financial crisis, governments may want to consider shifting toward indirect interventions."The Global Financial Development Report: Rethinking the Role of the State in Finance, examines how financial systems around the world fared during the global financial crisis. Coinciding with the anniversary of the 2008 collapse of Lehman Brothers, the report draws on several new global surveys and compiles unique country-level data covering more than 200 economies since the 1960s. Analyzing four characteristics—the size of financial institutions and markets, financial access, efficiency, and stability—the report tracks financial systems in the run up to the global financial crisis and gauges the extent of their recovery to date. The authors confirm that developing economy financial systems are less deep and provide less access than those in developed economies, but they do not differ much in terms of stability. One of the report’s original contributions is on state-owned banks. During the crisis, many developing economies turned to state-owned banks to overcome the credit crunch. In countries such as Chile and Tunisia, governments pumped capital into state banks to cover existing loans or provide new credit to exporters or small- and medium-sized firms. South Korea raised the credit ceilings of its state-owned banks, India and Tunisia set up credit lines for those banks, and Brazil’s and China’s largest state-owned banks expanded credit considerably during the crisis.The report finds that such interventions helped counter the spread of the crisis, but they may carry a price: inefficient lending, which in some cases is politically-motivated. In turn, that led to distortions that were amplified as capital was pumped into state banks, or as new credit lines were set up for them to encourage lending to exporters and smaller enterprises. In some instances, state banks continued to extend credit even during economic recovery, raising concerns that they may crowd out private banks.Past as well as new research on previous crises reveals that government ownership of banks is associated with lower financial development, more financial instability and slower economic growth. The report recommends that countries carefully consider the risks posed by state-owned banks and pay attention to how they are governed, which is especially challenging in weak institutional environments.The report also reviews recent successes and failures of the state as a regulator and supervisor. External assessments suggest that supervision in many places, for example in Australia, Canada and Singapore, worked well. Also, many developing economies had limited exposure to the risky behaviors that precipitated the meltdown, and most averted outright distress, including Malaysia and Peru, both of which were praised for their prudent policies. Nonetheless, some countries suffered direct hits, especially in Europe and Central Asia, where reliance on parent banks and a build-up of funding imbalances in the run-up to the crisis left many countries vulnerable. The authors analyze common traits among countries that were hit hard by the crisis versus those that fared better. Non-crisis countries tended to have less complex but better enforced regulations. Crisis countries allowed for less stringent definitions of capital, were not as rigorous in calculating their capital requirements for credit risks, and only 25 percent of them required general provisions on loans and advances (versus close to 70 percent in non-crisis countries).The report refutes the view that there was “too much competition” in the financial sector of the crisis countries. “Research presented in the report suggests that with good supervision, more competition can actually help improve efficiency and enhance access to financial services, without undermining stability,” says Asli Demirgüç-Kunt, the World Bank’s Director of Development Policy and Chief Economist for Financial and Private Sector Development. The World Bank Group is working with member countries to support the development and stability of their financial systems, along with economic growth and poverty reduction. “Around 16 percent of the Bank Group’s lending during the financial crisis went to the financial sector – double the 8 percent of its lending before the crisis began,” says Janamitra Devan, the World Bank Vice President, Financial and Private Sector Development. “This report is part of the Bank’s continuing commitment to provide knowledge, operational support and lending to developing countries – both in times of financial crises and in eras of economic expansion.”The Global Financial Development Report is available through an interactive Web site and the underlying data are free to download through the Bank’s Open Data initiative. Show Less -

WASHINGTON, August 30, 2012 – Global food prices soared by 10 percent in July from a month ago, with maize and soybean reaching all-time peaks due to an unprecedented summer of droughts and high tempe... Show More +ratures in both the United States and Eastern Europe, according to the World Bank Group’s latest Food Price Watch report.From June to July, maize and wheat rose by 25 percent each, soybeans by 17 percent, and only rice went down, by 4 percent. Overall, the World Bank’s Food Price Index, which tracks the price of internationally traded food commodities, was 6 percent higher than in July of last year, and 1 percent over the previous peak of February 2011.“Food prices rose again sharply threatening the health and well-being of millions of people,” said World Bank Group President Jim Yong Kim. “Africa and the Middle East are particularly vulnerable, but so are people in other countries where the prices of grains have gone up abruptly.”Overall, food prices between April and July continued the volatile trend observed during the previous 12 months, which halted the sustained increases between mid-2010 and February 2011. Prices increased in April, came down in May and June, and sharply increased in July.Sharp domestic price increases have continued in this quarter, especially in Africa. Sub-Saharan Africa, in particular, experienced the highest price increases in maize, including 113 percent in some markets in Mozambique. Meanwhile, the Sahel and eastern Africa regions experienced steep price increases of sorghum: 220 percent in South Sudan, and 180 percent in Sudan, for instance.According to Food Price Watch, weather is the critical factor behind the abrupt global price increases in July. The drought in the U.S. has resulted in vast damages to the summer crops of maize and soybeans, for which the country is the world’s largest exporter. Meanwhile, the dry summer in the Russian Federation, Ukraine, and Kazakhstan has contributed to projected wheat production losses.The abrupt food price increases turned favorable price prospects for the year upside down. World Bank experts do not currently foresee a repeat of 2008; however, negative factors -- such as exporters pursuing panic policies, a severe El Nino, disappointing Southern hemisphere crops, or strong increases in energy prices -- could cause significant further grain prices hikes such as those experienced four years ago.Droughts have severe economic, poverty and nutritional effects. In Malawi, for instance, it is projected that future severe droughts observed once in 25 years could increase poverty by 17 percent, hitting especially hard rural poor communities. And in India, dismal losses from droughts occurred between 1970 and 2002 to have reduced 60-80 percent of households’ normal yearly incomes in the affected communities.“We cannot allow these historic price hikes to turn into a lifetime of perils as families take their children out of school and eat less nutritious food to compensate for the high prices,” said Kim. “Countries must strengthen their targeted programs to ease the pressure on the most vulnerable population, and implement the right policies.”“The World Bank has stepped up its support to agriculture to its highest level in 20 years, and will keep helping countries respond to the food price hikes,” continued Kim.The World Bank’s support for agriculture in FY12 was over $9 billion—a level not reached in the past two decades. The Bank is also coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations, as well as supporting the Partnership for Agricultural Market Information System (AMIS) to improve food market transparency and to help governments make informed responses to global food price spikes. Should the current situation escalate, the World Bank Group stands ready to go even further to assist client countries protect the most vulnerable against future shocks. Measures can include increased agriculture and agriculture-related investment, policy advice, fast-track financing, support for safety nets, the multi-donor Global Agriculture and Food Security Program, and risk management products.Programs and policies to help mitigate food price hikes include safety nets to ensure poor families can afford basic staples, sustained investments in agriculture, the introduction of drought-resistant crop varieties--which have provided large yield and production gains--and keeping international trade open to the export and import of food.According to Food Price Watch, prices are expected to remain high and volatile in the long-run as a consequence of increasing supply uncertainties, higher demand from a growing population, and the low responsiveness of the food system.How the World Bank is helpingIn FY12, which ended June 30, new World Bank Group (WBG) commitments to agriculture and related sectors reached over $9 billion. This exceeded projected lending in the Bank’s Agriculture Action Plan, which foresaw an increase from an average of $4.1 billion annually in FY06-08 to $6.2-$8.3 billion annually in FY10-12. IBRD/IDA assistance in FY12 was the highest in 20 years.From July 2012 onwards the Bank’s emergency response to severe food price shocks in the poorest countries will draw on IDA16 resources, including those available through IDA’s Crisis Response Window, as well as undisbursed resources available under the recently approved Immediate Response Mechanism. For instance, in response to drought in the Horn of Africa, IDA is providing $1.8 billion, to save lives, improve social protection, and foster economic recovery and drought resilience.IFC will invest up to $1 billion in the Critical Commodities Finance Program, aimed to support trade in key agricultural and energy-related goods, to help reduce the risk of food and energy shortages, as well as improve food security for the world’s poorest.A first-of-its-kind risk management product provided by the IFC will enable protection from volatile food prices for farmers, food producers, and consumers in developing countries.The Bank is supporting the Global Agriculture and Food Security Program (GAFSP), set up by the WBG in April 2010 at G20’s request. Eight countries and the Gates Foundation have pledged about $1.2 billion over 3 years, with $777.4 million received.The Global Food Price Crisis Response Program (GFRP) has reached 40 million people in 47 countries - through $1.6 billion in emergency support.The WBG is coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations.Supporting the Partnership for Agricultural Market Information System (AMIS) to improve food market transparency and help governments make informed responses to global food price spikes.Advocacy for more investment in agriculture research–including through the Consultative Group on International Agriculture Research (CGIAR) – and monitoring agricultural trade to identify potential food shortages.Supporting improved nutrition among vulnerable groups through community nutrition programs aimed at increasing use of health services and improving care giving. As part of its response to the food crisis, the Bank has supported the provision of some 2.3 million school meals every day to children in low income countries.The Scaling Up Nutrition (SUN) framework for action to address under-nutrition was endorsed by over 100 partners, including the World Bank.Improving global collaboration in the generation and sharing of knowledge between agriculture, food security, and nutrition, through the SecureNutrition knowledge platform: www.securenutritionplatform.org Show Less -

“We cannot allow short-term food-price spikes to have damaging long-term consequences for the world's most poor and vulnerable” – World Bank Group President Jim Yong KimWASHINGTON, July 30, 2012... Show More +—Given the exceptional drought in the US, current crop conditions in other grain producing regions, and the resulting increase in international food prices, the World Bank today expressed concern for the impacts of this volatility on the world's poor, who are highly vulnerable to increases in food prices.“When food prices rise sharply, families cope by pulling their kids out of school and eating cheaper, less nutritious food, which can have catastrophic life-long effects on the social, physical, and mental well being of millions of young people,” said World Bank Group President Jim Yong Kim. “The World Bank and our partners are monitoring this situation closely so we can help governments put policies in place to help people better cope.” “In the short-term, measures such as school feeding programs, conditional cash transfers, and food-for-work programs can help to ease pressure on the poor,” continued Kim. “In the medium- to long-term, the world needs strong and stable policies and sustained investments in agriculture in poor countries. We cannot allow short-term food-price spikes to have damaging long-term consequences for the world's most poor and vulnerable.”Thus far, crop projections do not indicate the potential for actual shortages in the major grains; however, stocks are low, and the harvests will continue to be dependent upon global weather, which leaves prices more vulnerable to higher volatility. Food price volatility creates unpredictability in the market and poses fundamental food security risks for consumers and governments. Volatility also discourages needed investment in agriculture for development due to increased financial risks and uncertainty for producers and traders.While the prices of many food staples have risen sharply, the Bank noted that the current conditions differ from the 2008 crisis. In 2008, while other grains increased in price, rice and wheat prices rose the most, although the price fell quite substantially in 2009 due to a notable supply response by farmers seeking to benefit from higher prices. In 2012, prices have risen across all the non-rice grains - wheat, corn and soybeans: Wheat prices are up over 50 percent since mid-June;The price for corn has risen more than 45 percent since mid-June; and Soybeans are up almost 30 percent since the beginning of June and up almost 60 percent since the end of last year. As recently as early June, analysts had expected price declines after the new harvests, not spikes. There had been early planting of corn and some soybeans in the United States, and the disastrous drought was unpredictable at that stage. Price increases will affect not only bread and processed food, but also animal feed and ultimately the price of the meat.In 2008, the price of rice more than tripled, which had a huge negative impact on the poor, especially in Asia. Although current rice prices remain at elevated levels, existing rice stocks are relatively comfortable. In addition, current prices of crude oil, fertilizers and international freight are at lower levels than in 2008, which will both ease the costs of importing food, and also the sowing and growing of next season’s crop. The impact of the U.S. drought on global markets is exacerbated by other countries also currently suffering from weather-related production issues. Almost continuous rain is causing problems for the wheat crop in many European countries, whereas the wheat crops in Russia, Ukraine and Kazakhstan have been hit hard by a lack of rain. In India, monsoon rainfall is about 20 percent below the long-term annual average. July is the critical planting month and there may be major negative implications if rains do not pick up. Should the current situation escalate, the World Bank Group stands ready to assist client countries through measures such as increased agriculture and agriculture-related investment, policy advice, fast-track financing, the multi-donor Global Agriculture and Food Security Program, and risk management products. We are also coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations, as well as supporting the Partnership for Agricultural Market Information System (AMIS) to improve food market transparency and to help governments make informed responses to global food price spikes. The World Bank has long cautioned that we can expect to see volatile, higher than average grain prices until at least 2015. In the poorest countries, where people spend up to two-thirds of their daily income on food, rising prices are a threat to global growth and social stability. However, higher prices can bring desperately needed income to poor farmers, enabling them to invest, increase their production and thereby become part of the global food security solution. There are nearly one billion hungry people worldwide. More than 60 percent of the world’s hungry are women. Malnutrition contributes to infant, child and maternal illness; decreased learning capacity; lower productivity and higher mortality. One-third of all child deaths globally are attributed to under-nutrition, and up to 80 percent of our brain architecture develops during the first 1,000 days of life, making access to nutritious food critical, particularly for young children. How the World Bank is helping In FY12, which ended June 30, new Bank Group commitments to agriculture and related sectors reached over $9 billion. This exceeded projected lending in the Bank’s Agriculture Action Plan, which foresaw an increase from an average of $4.1 billion annually in FY06-08 to $6.2-$8.3 billion annually in FY10-12. IBRD/IDA assistance in FY12 was the highest in 20 years.In response to drought in the Horn of Africa, the WBG is providing $1.8 billion to save lives, improve social protection, and foster economic recovery and drought resilience.A first-of-its-kind risk management product provided by the IFC will enable protection from volatile food prices for farmers, food producers, and consumers in developing countries.The Bank is supporting the Global Agriculture and Food Security Program (GAFSP), set up by the WBG in April 2010 at G20’s request. Seven countries and the Gates Foundation have pledged about $1.2 billion over 3 years, with $752 million received.The Global Food Price Crisis Response Program (GFRP) has reached 40 million people in 47 countries - through $1.6 billion in emergency support. From July 2012 onwards the Bank’s emergency response is channeled through the International Development Association’s Crisis Response Window and the recently approved Immediate Response Mechanism that will provide basis for emergency assistance in the future. The Scaling Up Nutrition (SUN) framework for action to address under-nutrition was endorsed by over 100 partners, including the World Bank.The WBG is coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations.Supporting the Partnership for Agricultural Market Information System (AMIS) to improve food market transparency and help governments make informed responses to global food price spikes.Advocacy for more investment in agriculture research -- including through the Consultative Group on International Agriculture Research (CGIAR) – and monitoring agricultural trade to identify potential food shortages.Supporting improved nutrition among vulnerable groups through community nutrition programs aimed at increasing use of health services and improving care giving. As part of its response to the food crisis, the Bank has supported the provision of some 2.3 million school meals every day to children in low income countries. IFC will invest up to $1 billion in the Critical Commodities Finance Program, aimed to support trade in key agricultural and energy-related goods, to help reduce the risk of food and energy shortages, as well as improve food security for the world’s poorest. Show Less -

“Ending AIDS and Poverty”Your Excellencies and honored guests, ladies and gentlemen, colleagues and friends,As we look back on the history of this epidemic, it is hard to say that there is any o... Show More +ne moment when the tide began to turn. Because the truth is that we have been turning back the tide of AIDS, step by painful step, for 30 years.And at nearly every turn, it is the activists, and their communities, that have led the way.It was activists and communities who devised safer sex, promoted condom use, needle exchange and virtually all the behavioral prevention we use today.It was activists who transformed drug development and regulatory processes, and involved patients in clinical research, cutting drug approval times in half in the global north.It was activists in Durban in 2000 who began to push for access to antiretrovirals in the developing world and who kept pushing and are pushing still for them to be affordable and available to everyone who needs them, everywhere.And it was activists whose deep understanding of the communities most affected by AIDS has spurred a movement to promote the health and dignity of gay men, sex workers and drug users that has now reached every corner of the world.It was TASO in Uganda, ACT UP in the US, TAC in South Africa, Grupo Pela Vida in Brazil, the Lawyers Collective in India, the Thai Drug Users Network, and countless organizations like them that have woven together one of the most extraordinary movements the world has ever seen. Remember what ACT UP stands for: the AIDS Coalition to Unleash Power.This has been a movement that came together in anger, that thirsts for justice, that is fundamentally about unleashing the power of human solidarity, and that for 30 years has forged alliances to expand that solidarity and be ever more inclusive.A movement that has grown to include pioneering governments from Brazil to Botswana, UN agencies, visionary donors and donor countries, and groundbreaking NGO treatment programs; a movement that has led to efforts such as 3 by 5 and the creation of the Global Fund and PEPFAR.Thanks to this collective effort, we have seen remarkable gains in the fight. Prevalence has fallen steeply in many countries, new prevention strategies show great promise, and more than 8 million people are on treatment today. As we gather here in Washington, we look towards the end of AIDS as something that is actually within our reach, a vision that to me and many others here seems less idealistic, less outrageous, than 3 by 5 did, just a decade ago.Today marks the first time that a President of the World Bank Group has addressed the International AIDS Conference. I’m here because I know what this movement is capable of achieving. I’m here to bring you both a pledge and a challenge.I pledge that the World Bank will work tirelessly with all of you here to drive the AIDS fight forward until we win.And I challenge you to join me in harnessing the moral power and practical lessons that the AIDS movement has produced to speed progress against that other global scourge, poverty.As the leading global development institution, the World Bank is concerned with all aspects of development, all the dimensions that are united in the eight Millennium Development Goals. We know that development challenges are interdependent. And yet our approaches to these problems often remain fragmented, limiting our vision and our results. That’s why the idea of bringing lessons from AIDS to poverty reduction is crucial. By breaking down siloes between these two efforts, we begin a process that will go much farther. Ultimately we’ll multiply the flows of knowledge and experience across all development sectors, accelerating progress on education for all, maternal and child health, environmental sustainability, and so many of our other goals.Let me describe how the World Bank is applying its distinctive strengths to AIDS.The World Bank’s mission is to build prosperity and eradicate poverty in countries around the world. The Bank supports countries with financing, but also with knowledge and analytic capacities that are often just as important. In 2000, under President Jim Wolfensohn, the World Bank worked with many of you here to put the first billion dollars on the table for AIDS. Today, in health, the World Bank’s comparative advantage is in systems building. Our health sector strategy is focused on supporting countries to create health systems that deliver results for the poor and that are sustainable. We also help countries build social protection systems that can mitigate the impact of events like economic shocks and catastrophic illness, including AIDS, on families and communities.As an example of our health systems work, the World Bank is helping governments implement performance-based financing, which gives local health facilities financial rewards when they increase delivery of essential services and improve quality. In Burundi, after a performance-based financing model was introduced nationally to strengthen the AIDS response, the number of HIV-positive pregnant women receiving antiretrovirals for the prevention of mother-to-child transmission increased by 65 percent in just one year.We know that HIV is more than a medical problem. AIDS has devastating economic and social impacts on individuals, families and communities. That’s why social protection is also a critical piece of a comprehensive AIDS response. Every year, worldwide, 150 million people are forced into poverty by increased health expenditures and lost income due to illness, including AIDS. To date, the Bank has helped 40 countries scale up social safety-net programs, including health insurance schemes, old age pensions and cash transfer programs that supplement the incomes of poor families. Our goal is for all countries to be able to implement basic social protection programs tailored to their specific needs.Success in the AIDS response depends on partnerships. On a very personal level, I am committed to strengthening the World Bank’s multilateral alliances with UNAIDS and the Global Fund; our partnerships with UN technical agencies, including WHO and UNICEF; and our collaboration with PEPFAR and other bilaterals. Moreover, strong partnership with civil society that delivers results for the poor will be a signature of my presidency. We’ll build on the lessons of the Bank’s MAP initiative, which recognized that civil society voice is critical to make programs work for poor and vulnerable people.In 2008, the overall proportion of people in the developing world living on less than $1.25 per day was 22 percent, less than half of the 1990 figure. The Millennium Development Goal of halving the incidence of extreme poverty has been reached. But today 1.3 billion of the world’s people still live in absolute poverty. This is intolerable. We can and must end absolute poverty in our lifetime. To do so, we’ll need to share know-how across the boundaries of institutions and development fields. And we’ll need to use that know-how to build systems that can sustainably meet human needs.The AIDS fight has shown the world how to turn the tide of a massive assault on human life and dignity. We have a responsibility to ensure that lessons from AIDS inform and improve our efforts to tackle other social goals, above all poverty eradication. In some places, this is already happening. Governments and their partners are applying AIDS knowledge and resources strategically to beat the epidemic and simultaneously drive a broader anti-poverty agenda. Rwanda has used AIDS money and technical expertise from the World Bank, the Global Fund and others to build up its widely admired health insurance system, the mutuelles, and to expand secondary and vocational education. In Rwanda, AIDS resources are contributing to the strategic investment in human capital that has helped drive the country’s remarkable economic progress. From being an exception, this approach can become the rule. This will be a leap forward in our capacity to build systems and deliver results. As Rwanda shows, successful countries have tackled AIDS as a systems problem. They’ve responded to the epidemic by strengthening delivery systems for key social goods, and they’ve integrated those systems to address people’s needs comprehensively.Building systems is what the World Bank does best. We have decades of experience making systems work for all, but especially the poor. I want the Bank to lead the world in joining systems knowledge with clear moral values to help countries solve their toughest problems.Two features of the AIDS fight with clear lessons for poverty work are openness and innovation. The countries that have achieved the greatest successes against AIDS have been open about their epidemics. They have shared information widely, challenged stigma, and encouraged public debate. They have refused secrecy and dispelled irrational fear. There are many lessons here for the way we fight poverty. As we at the World Bank continue to tackle corruption, increase transparency and freely share our data, we’re taking these lessons from the AIDS fight ever more fully on board.Looking back over the last 30 years, we see that the AIDS response has generated continuous innovation. From the acceleration of drug approval protocols to task shifting within medical teams. From fixed-dose drug combinations to the hiring of accompagnateurs to deliver community-based services.We’ll need more innovation in the years ahead to finish the fight against AIDS. As President of the World Bank, I want to infuse that same appetite for innovation into the struggle for inclusive economic development. I’m convinced that if the practical know-how and the spirit of the AIDS movement can be brought to the poverty fight, there is no limit to what we can achieve.On the front lines of the 3 by 5 initiative, I saw daily how HIV implementers were generating innovative solutions to practical problems: from supply chain management to human resources to creating space for community voice in program evaluation. But have we done enough to organize, analyze and apply this knowledge? Have we brought it to bear in every setting where it could be transformative? All of us here know that a difficult fight against HIV lies ahead. We have come to Washington because we are determined to win that fight. We see our task through the lens of solidarity that has inspired the most ambitious AIDS activism and that we all feel today in this room. From the start, as they fought this epidemic, the activist pioneers knew they had to tackle the structural forces of prejudice, social exclusion and economic injustice. Their ambition to end unjust human suffering was as vast as the suffering itself. All of us here today must be just as ambitious.The AIDS movement has rekindled values that show the kind of global development we’re striving for: development grounded in solidarity, courage, respect for the dignity of all people, and an unrelenting demand for justice.If we unleash the power of these values, we can overcome any obstacle in the fight for economic and social justice. If we unleash the power of these values, we can leave to our children a world free of poverty and AIDS.We can end AIDS. We must end AIDS. The challenge we face is great. But as I look out at all of you today, I can actually see the end of AIDS. Thank you, let’s make it happen. Show Less -

Global Development at a Pivotal Time: A Conversation with World Bank President Dr. Jim Yong KimMR. TALBOTT: My name is Strobe Talbott and it is my great pleasure to welcome you here to Brookings... Show More + this afternoon for a conversation with the new President of the World Bank Group.Whenever we have a distinguished visitor here to Brookings, in particular--and particularly if it's somebody who is coming here for the first time, we're always careful to check with his protocol people on exactly how the distinguished visitor wants to be addressed, whether we use "Doctor" or "Honorable," whatever, and the word came back "Jim."[Laughter.]MR. TALBOTT: So, welcome, Jim. It's really great to have you here. A couple of your successors, your most immediate successors, were frequent visitors here, particularly Bob Zoellick as recently as just a couple of weeks ago as he offered some reflections on his way out of the office that you now occupy.And Bob's predecessor, Jim Wolfensohn, was, for many, many years an outstanding trustee of this institution and made it possible for us to broaden and deepen our own work on development, and it's great to see on your team Navtej Dhillon who is an alumnus of this organization.Navtej, great to have you back here, as well.Jim is going to give us a sense as he takes on this extraordinarily important and challenging job of his priorities and his overview of the challenges ahead.I think everybody here knows quite a bit about his career, his dedication to improving health and development around the world, among other things as the cofounder of Partners in Health and also as a former Director of the World Health Organization's HIV/AIDS Department.And I think you also all know that, immediately before taking on this assignment, he was the very highly regarded President of Dartmouth, a post that he held for three years.Our order of the program is very, very simple. Jim is going to offer some remarks from the lectern here and then he is going to enter into a conversation with Kemal Dervis, who is our Vice President and Director of Global Economy and Development here at Brookings, a former head administrator of the United Nations Development Program and a former senior official of the World Bank.So, these two gentlemen have covered a lot of the same ground in their careers. They will do in an introductory conversation between the two of them and then open it up to all of you.So, Jim, the microphone is yours, and thank you again for being with us.[Applause.]DR. KIM: Thank you. It's such a pleasure to be here, Strobe, but when you said that my successors have been here, as the man who knows everything about Washington, I thought, "Oh, my God, what does he know that I don't know." I still have five years, Strobe.Thank you for the kind introduction and I just want to share with you a few words before we jump into the discussion.Kemal, I'm so pleased to be with you today. You're one of the heroes of the World Bank. And in many ways, the Brookings Institution, and the Global Economy and Development Program that you head is a showcase for evidence-based policy research, an approach that's critical for the World Bank today.As many of you know, I'm in my third week at the World Bank, and I'm still learning about this great institution. So, let me use this opportunity to share my early reflections in the role of the World Bank in global development today. I want to start by making two points. First, the last decade has been very good for many, though not all, developing countries. Progress has not come easily. It was borne out of hard work, learning from success and failures, bold reforms, and strong partnerships. This decade of achievement definitely inspires optimism for the next phase of our development work. My second point is that while we should be proud of the progress of the last decade, we must acknowledge that 1.3 billion people still live on less than $1.25 a day. This is a stain on our collective conscience. Aggressively attacking poverty is both a moral and an economic imperative. The next phase of global development will require us to address critical challenges, if we are to make progress. As a global institution with 188 member countries, the World Bank must play a pivotal role in brokering solutions to achieve a world free of poverty. But in order to succeed, the Bank must also evolve and become better. Let me elaborate.For the last decade or so, remarkable things have been happening in the developing world. Since 2000, nearly 30 developing countries have grown by 6 percent or more a year. We’ve never seen this kind of rapid and sustained development across so many countries. High-income economies also grew about 1.6 percent, and so we witnessed both growth and convergence. Developing countries are now the engine driving the global economy, accounting for around two-thirds of global growth. We can fairly say that the concept of a "Development Decade" that eluded us for 50 years was finally achieved.This story of transformational change is not just a story about emerging economies like India and China. It is broad-based, and extends to countries that are land-locked like Rwanda, a country that I visited many times, that are small like Laos and large like India; that don't have natural resources, like Ethiopia; and it extends even to countries that were once mired in conflict, like Mozambique.This story of transformational change is also about new gains in the fight against poverty. There are millions of people who are no longer poor; there are many more families who are sending their children to school; and there are many more communities that have electricity, water and access to health care. The rate of decline in child mortality in Africa is double what it was a decade ago. The overall percentage of the population in the developing world living on less than $1.25 a day was 22 percent in 2008--half the 1990 figure. The Millennium Development Goal of halving the 1990 incidence of extreme poverty has been achieved.The lesson of the last decade is that progress is possible for everyone. Nothing is pre-determined. Having come to the U.S. from a country that was once described as a "basket case," I know in my gut that we have to take great care never to again attach that label to any country again.Although a tremendous amount of work remains to be done as I take the helm of the World Bank, I carry with me an unshakable optimism that all countries can boost prosperity and eradicate poverty. There are many differences across countries but there are some common elements to countries that have grown continuously. They have stable governments that pursue prudent economic policies, provide essential infrastructure and services, and take a long-term perspective. They use the opportunities provided by global markets and they have a dynamic and competitive private sector.Through its lending, knowledge, and expertise, the World Bank has been an important partner in supporting these countries in their success.I have met with hundreds of staff over the last three weeks and I have discovered so many examples of where the Bank has been at its best. It partnered with China to undertake land-terracing to enable small farmers to grow more and earn more, which today is being piloted on the hillsides of Rwanda. It’s been working with governments to improve the management and transparency of public finances so that taxpayer money is better spent. The Bank is helping countries share experiences across continents. With the Bank's facilitation of knowledge development and transfer, Turkey's economic transition is inspiring reformers in North Africa and the Middle East. India's IT services are emulated in many African countries. Brazil is offering its knowledge in agriculture to African countries.All across the developing world, the International Finance Corporation, our private sector arm, together with MIGA, the Multilateral Investment Guarantee Association [Agency], are leading the way in proposing innovative approaches to leveraging private sector investment in areas such as agriculture, manufacturing, and clean energy.But just as these countries have shown success or failure is not pre-determined, we also know that future progress is not pre-ordained. A great deal remains to be done in order to accelerate our fight against global poverty and I see four major challenges:The first is protecting development gains against global economic risks;Secondly, we need to broaden development to countries that are being left out especially the so-called fragile and conflict states;The third is that we have to ensure that growth is sustainable;And the fourth is demanding that growth is inclusive.In our interconnected world, we know that crises in one region or in one sector can affect all countries. For instance, even if the crisis in the euro area is contained, it could still reduce growth in most of the world's regions by as much as 1.5 percent. A major crisis in Europe could reduce GDP in developing countries by 4 percent or more, enough to trigger a deep recession everywhere. Such events threaten many of the recent achievements in the fight against poverty.To put it starkly, what's happening in Europe today affects the fisherman in Senegal and the software programmer in India. Therefore, it is urgent that European countries take all necessary measures to restore stability. I am encouraged by the recent steps taken towards fiscal and banking union as well as the additional resources made available by some G-20 countries to the IMF. The World Bank is ready to help developing countries protect growth, jobs, and the poor. Thanks to the generous IDA replenishment and capital increase, the Bank has adequate resources to increase lending and investments and to share unparalleled technical expertise. We can work with our clients to make rapid disbursements to maintain growth-enhancing investments. We can help countries improve the quality of their fiscal spending. IFC's financing is providing credit to small and medium enterprises and businesses as well for trade finance. IFC is also supporting subsidiaries of Western European and other banks in emerging markets to enhance liquidity and credit.We can help countries in building cost-effective safety nets that can protect people against shocks. What I learned by working in communities around the world is that the poorest are the most vulnerable to sinking even deeper into poverty. When illness afflicts a breadwinner, it compromises the future of the whole family. I have seen this happen so many times in my own work. Three out of five vulnerable people lack safety nets in developing countries, and four out of five in the poorest countries. Safety nets must be available on a continuous basis to increase resilience against shocks such as ill health or financial crisis, and building them requires political will. The good news is that effective safety nets need not be costly. Flagship Mexican and Brazilian programs cost only around 0.5 percent of GDP, much less than what other countries spend on untargeted and less effective programs or fuel subsidies. The World Bank has worked with governments to expand safety nets in 40 countries, and our goal is to ensure that every developing country has an effective and sustainable safety net. Second, beyond the current volatility, there are regions and countries with repeated cycles of conflict and instability that are being left behind. One-and-a-half billion people live in areas affected by fragility and conflict. No low-income fragile or conflict-affected country is on track to achieve even a single Millennium Development Goal. These countries need a World Bank that is far more responsive than it is today, and capable of delivering the right financial and technical support at the right time. Take Afghanistan, where the World Bank has partnered with the government to establish the National Solidarity Program. It is pioneering an approach where local councils are taking the lead in projects aimed at rural reconstruction and poverty reduction. To date, the program has benefited over 20 million people, and it is active in 28,000 villages across all provinces of Afghanistan. This is the kind of successful engagement that the Bank must spread to other fragile states.Third, even in successful countries, the next stage of development will call for further structural changes in order to sustain growth. Middle-income countries have to diversify their sources of energy. They have to modernize their economic structures and government programs. They have to create quality jobs to match the growing expectations of their citizens. These countries have an increasing number of options for development financing, but many continue to look to the World Bank for its lending, expertise, and knowledge. In particular, they need a more flexible partner to help them address deficits in infrastructure and institutions. Finally, growth and development have to be inclusive, ensuring that their benefits are broadly shared. Even as an unprecedented number of people in the developing world are ascending into the middle class, segments of the poorest populations are being left behind, and other segments of the middle class are at risk of falling back into poverty. As young people in Egypt and Tunisia have reminded us, even in middle-income countries, development gains have been uneven and incomplete. Demands for respect of individual rights, the rule of law, and the administration of justice go hand in hand with inclusive development, requiring institutions to be more open and accountable. That's why the World Bank is broadening its partnerships. Informed by the lessons of the Arab Spring, the Bank is creating a Global Partnership for Social Accountability. It is providing seed money from IBRD income and leveraging resources from foundations and bilateral donors. This would be the first time the World Bank is allocating specific resources from its income to support a partnership with civil society. We will try to do at the Bank what the most successful countries did during the last decade. We will work tirelessly, we will continue to learn what works and what does not, and we will carry out bold reforms when they are needed; and more than that, we will hold ourselves accountable to the people we serve so that we are judged by our results, not just our intentions. I started my remarks with the achievements of the last decade. I want to conclude with the promise of the next. Developed countries have made significant contributions through aid. They must continue this engagement, given their stake in a strong and dynamic global economy. Emerging economies must increase their contributions, commensurate with their growing economic weight. The world has unprecedented resources, knowledge, and experience to push forward the development agenda. I hope that the coming decade is defined by a great convergence. Where we reduce poverty to levels we might never have imagined; where more people join the global middle class, enjoying better living conditions and greater opportunities; and where the world commits to the critical task of leaving a healthier planet to the next generation. The time is now, the task is urgent. I look forward to the conversation.Thank you.DR. DERVIS: Thank you very much, Jim. When Strobe told me you were coming after your phone call--I think he was in Asia, in China, and you had a phone call and you said you would be willing to come as early as mid-July. So, thank you very, very much.DR. KIM: It's my pleasure.DR. DERVIS: It is a very important moment in the world economy. The changes have accelerated, the crisis was heavy in the advanced countries but, as you said, it also has affected the developing countries. It is a world economy and you're coming to lead one of the, I think, greatest institutions in the world, which I had the privilege to serve for quite a while.And yet, one always needs priorities. One can't do everything at once. When you look at the world today and at the World Bank, do you already see some priorities? Are you going to launch a process maybe to help you define them? What first?DR. KIM: Well, Strobe, I want to make it clear, I've been here for now two weeks and two days.DR. DERVIS: That's right.DR. KIM: Right? Three days. And what I've begun to do is to really try to take the temperature of the organization. So, I've been visiting a lot of the departments. Just this morning, I visited the Middle East and North Africa Department, and what I've been discovering about the institution is really encouraging. First, you walk in the door of the World Bank and it says on the wall "Our dream is a world free of poverty." Now, I was so moved by that slogan on the wall that I actually had some ties made with that slogan on the tie, and the reason is because I think we need to remind ourselves that this notion that the work of the World Bank is to boost prosperity and eradicate poverty. Those are our--the most compelling values and missions that you could ever imagine. So, we have a great mission statement. We know what we're doing in the largest sense and it's really critical.And so, as I've walked around the Bank, I've been asking some pretty specific questions, and the question I asked is "When do you remember the World Bank being at its very best?" And I've heard some fantastic stories. Of course, I want to hear more about the story of Bosnia as some of you may have read in Sebastian Mallaby's book that when you were in Bosnia you actually--the plane landed and it kept rolling and then you ran out of the plane into the country. Now, that's dedication, Kemal.And people tell us about those times when the Bank moved quickly, really effective. Kyrgyzstan is an example, right after the conflict. The Bank was in there very quickly, were the first to engage.So, throughout the institution, people have very strong memories of when the Bank was at its very best. And so, I think one of the most important questions for us is what do we need to do at the World Bank to ensure that we're at our best every day for every country in e very situation.So, there are some things that we need to do to look inside the Bank, but of course, we're living in a world where we have an ongoing crisis. And so, on an almost daily basis, we're having conversations about what we can do to understand the impact of the European crisis, especially on developing countries.So, we're having conversations about what are the specific transmission channels through which the European crisis is going to have an effect on the different countries, and we're looking at everything from trade to remittances to commodity exports and the impact on the different regions and different countries, and we're having really wonderful conversations and we're often at a large table talking about lessons from one Region that might be applied in another Region. Our experts in so many different fields are coming and talking about financial instruments that might be used to mitigate risk. And so, we're having this conversation every day.And so, we have to be ready to respond to the crisis in whatever form it takes.So, the mission is great. We can do so much more if we build a World Bank that can be at its best all the time, and of course we've got to be aware of the current economic situation.DR. DERVIS: With your permission, I'll come back to Europe in a little while, because I think it's quite important and interesting and I have a question that I really am burning to ask.But before that, when we say the World Bank, most people say it's one institution, but in fact it's a group of institutions: There is IDA with concessional money and grant money for the poorest countries; there is IBRD, which is actually a profitable bank doing long-term lending to middle-income and lower middle-income countries. "Profitable" in the sense that while it lends at a very small margin, it covers its costs, and I'm sure you're going to bring this message to Congress and other parliaments around the world.DR. KIM: Absolutely.DR. DERVIS: And there is, of course, the IFC, the private sector branch, which is highly successful. There are other parts, the MIGA and so on. And as you said in your speech, the old kind of distinction between the poor and the rich, the poor countries, the rich countries is kind of fading away, and yet poverty remains a huge challenge.How do you look at this diversity? Is it the strength of the World Bank but maybe can it also lead to loss of focus? There are all these different constituencies out there.DR. KIM: Right, right. Well, you know, we have 188 member countries, so the diversity starts right there. So, in Board meetings in discussion with our Executive Directors and representatives from those countries, there are very divergent views on the direction the Bank should go, but that's the whole point of multilateralism.The point of multilateralism is that we sit in a room together and then we try to find ways forward that make sense to 188 member countries. And there are always dissenters, but I think that that discussion is one of the most important pieces. I'm a believer in multilateralism and I've worked in the UN system before, and I think that the ability to do great work in a multilateral context is critical for the world, so let me start with that.I've spent a lot of time now talking to different people and different parts of the organization and, again, as I walk the halls, there is an intense desire to integrate across the institution.So, if you look at IDA, IBRD, IFC, MIGA, ICSID, these are the five entities that exist, but the way I look at it is that, in any given country, when we go to a country, we should be able to sit down and say to them, as a Group, "We can help you do--an understanding of your role in the current macroeconomic context. We can help you with fiscal policy. We can help you with health care education, social protection programs. We can help you with infrastructure. Oh, and by the way, we can also help you think about, for example, which cluster you should invest in in the private sector."The fact that we can do all of those things gives us, I think, an enormous relevance to countries all over the world, and the issue that now we're taking up day-in and day-out is, how can we integrate more?Just this morning, I was hearing, "We are at our best when we collaborate across sectors and divisions and even Regions. That's when we're at our best."And you know how that works, Kemal. When there's an emergency situation, you get on the phone and you call all your best people and they come and we have had transformational impact in certain countries.Now, is there a way for us to be able to do that all the time across all the five entities? Let me just say that I'm encouraged by the willingness and the desire of World Bank staff to move in that direction. Now, the implementation is going to be complicated, but that's precisely what we have to do. We have to be the institution that integrates across all our different areas and provides enormous value to our member countries.We talk a lot about knowledge, the Bank is a knowledge institution. There are many more Ph.Ds. at the World Bank than there were at the Ivy League institution I was president of before I came here, right?So, for me, it's just stunning the combination of direct, on-the-ground experience. I mean, in coming in, meeting all these people who have been trying to solve problems in developing countries for 30 years has been just the most exhilarating experience. It's what I've been doing. So, it's really felt like I've met just an incredible group of people with a rich set of experiences.At the same time, over 66 years, we have data. In fact, we have so much data that some of it is on onion skin paper sitting in salt mines in Pennsylvania, right?Bob Zoellick, among his many legacies is going to be the fact that he's opened up the institution to make that data available to everyone, and that's fantastic. It's really important.But then, we also have this analytic capacity. So, on-the-ground experience, lots of data, tremendous analytic capacity. I just don't think that that kind of combination is matched anywhere in the world. So, for me, that means we have an even greater responsibility to be our best selves every single day.DR. DERVIS: Yeah, the capacity is really, as you say, is enormous.DR. KIM: Is enormous, yeah.DR. DERVIS: And on internal data, we're trying to learn from you here at Brookings, but today is a breakthrough moment. I'm doing a little advertisement also for us, but we have the data visualization project with poverty data, demographics, income, and all that accessible now on the website for everybody to see, but we're learning a lot from how the World Bank has done that.Now, you mentioned this diversity and you've been a leader in social policy and social analysis and health. You led a very important part of the United Nations. What are the common features you see, because everything is different? I mean, macroeconomics, finance, health, transportation, energy, but there are common features in policy which I'm sure you've encountered in your career. What would you stress among these common features?DR. KIM: So, one of the things that has now affected every discipline, including economics, if I might say, is this notion that we can create an evidence base around--and measure things that we never thought we could measure before.We talk a lot about evidence-based medicine. Evidence-based medicine, of course, is everywhere, but it's only about 30 years old. I mean, I remember when I started medical school in 1982 that it was just the beginning of talking about, "We can generate evidence around the things that we do," and it's not any longer the experienced clinician who's saying to you, "Well, we do this because that's what we do."This is now a revolution that's happening everywhere. I mean, as you know, the randomized evaluations and data collection methods have expanded but, more generally, I think that there's a commitment to evidence everywhere.The other thing that I think is critical is that we have to now focus on actually delivering results on the ground. That's everywhere, right? So, the ability to collect more evidence has really focused on results on the ground.And one of the things that I was working on before I came to the World Bank was that I thought that there could be a science of how to actually deliver results in the social sector, and would say many times that the thing about working in the social sector is that so often we have been very tolerant of poor execution. Great idea, put some money to it, but we haven't really focused on the science of execution. And so, at the Bank, there are so many people who are really great implementers. We haven't don't enough, I don't think, in terms of capturing that experience and knowledge about how to actually make something work on the ground, systematizing, and then spreading it to everybody. So, there is a common sense, and let me just use health care as an example, the notion that if you have good research, good tools, put it in the hands of trustworthy individuals, and you're done, as opposed to thinking, what is that you really need to do to make sure that you deliver value at the end of the day. It's something that I hear a lot inside the Bank from our staff. We really want to turn the focus of the Bank more toward what are the specific outcomes and results that we're achieving on the ground and how can we set up a system so that that is what you're rewarded for, actually delivering the results on the ground.And I think there's a science to it. I think we have systems engineers at the Bank who are very good at thinking about how to make things happen like that. So, everyone is focused on results on the ground, delivery, what is the science of delivery, what is the science of execution. How can we look at the things around which we have our greatest, highest aspirations, health, education, social welfare, environmental sustainability? And how can we be much more focused on actually being effective at delivering on the ground. I think there is--I use the word "science" aspirationally, of course, but I think there is a science there, and I think economics is critical to it, I think systems engineering, I think some of the management disciplines can be helpful to us. And so, the very same problems we're seeing in global health, which is, how do we take the money that we now have and make sure that it has a longer lasting impact and that actually build systems, I think that's true throughout the work that we do at the Bank.DR. DERVIS: I think those are very important points and the systems approach in so many areas is so effective. The days when the just money output is what counted are gone—DR. KIM: I think they're gone. That's exactly right.DR. DERVIS: We've seen in economic history you can spend a lot of money and have very little impact, or you can spend less money and have more impact. Now, I'm going to go to the lessons learned and the cross-fertilization between developing countries and I think that that's very important. Korea is one of the big success stories and many countries want to learn from it. But now something else has come up which is very exciting but politically quite challenging. I've been working on Europe quite a bit lately and fiscal policy, spending less, getting more government revenue is one part of the picture, but if that's all that we can offer to get the crisis countries over their difficulties, it's not going to be possible. They need growth, they need supply-side response, they need new ways of doing things, and I mean, I'm of course a little bit biased, but the Bank has a lot of that knowledge and we've seen the IMF in many ways over the last five years becoming for the first time a truly global institution.DR. KIM: Sure, yeah.DR. DERVIS: Maybe in some ways, not the same way, perhaps, but in some ways the challenge is there also for the Bank. I can think of countries such as Spain or Greece that would greatly benefit from the knowledge of the Bank, from the experience of Korea, from the experience of other countries such as, you mentioned, Brazil and Mexico, but it's politically, of course, a challenging task in a sense. DR. KIM: Sure. One of the things we know--so, as we look around at the different Regions and the different countries, we know that Latin America weathered the financial crisis fairly well, and if you look at the reasons, I mean, this is not--may people may have their different opinions, but as we look at it, we think, "Well, what did they do?" They opened up their economies. They developed regionally in a very effective way. They developed social protection programs like Progresso and Oportunidades, Bolsa Familia in Brazil. They reduced income inequality. So, there's a lot of things that they did that seemed to have prepared them to weather the financial crisis. Let me give you another example that--and again, these are, how can we learn from the developing countries, middle-income countries, in thinking about responding to the current crisis? So, take a look at Korea--and I'll just give you one example that was very close to my heart--when the crisis of the late '90s hit, one of the most astounding things to me was that Koreans started going into their jewelry boxes and they took out gold. They gave away rings and there were places where Korean citizens could just put their gold, and that added up to a billion dollars. So, it might not have been the cash that turned the situation around, but the issue was solidarity. The issue was a very fundamental solidarity. The Korean people, everyday people, were saying "We want to contribute to the recovery," and they did that.Now, it strikes me that solidarity is a major question in the crisis today. So, I think the world has changed. I think there are many lessons from the developing countries that can be useful anywhere. I mean, I'd love to hear more about Turkey. Again, Turkey--our work in Turkey with you--is one of the times when our staff remember we were at our best.DR. DERVIS: Thank you very much. Well, I think there are lessons and there are big successes. Sometimes there are also mistakes and failures one can learn from, but as I look at the very severe situation in Southern Europe with unemployment in some countries above 20 percent, youth unemployment, 40 percent. You can't fix this just with macroeconomic tools. You need the sectoral knowledge and who has the best sectoral knowledge globally? It is really the World Bank. So, I hope the world community will find a way to access that and to help overcome this crisis which, as you said, is affecting the whole world.So, we're now going to open it up to the floor. I will propose, if it's okay with you take three questions at a time--DR. KIM: Sure, sure.DR. DERVIS: --so that we gain a little bit of time and then you can answer--sometimes questions overlap. You can answer in the most efficient way. Yes, we'll start with here. Please do identify yourself.DR. KIM: And use a microphone.DR. DERVIS: And use the microphone, yes.QUESTION: Thank you very much. I'm from JICA, Japan International Cooperation Agency, Keijiro Nakazawa.I thank you very much first of all for your comprehensive remarks and very interesting discussion with Kemal, and I'm also glad that you kindly met our new President, Dr. Tanaka, quite soon, and I'm looking forward to seeing you there, as well.My question is your view about the role of government in development. In this country, it is always discussed whether the government is a problem or the solution, or at least part of the solution, and in the developing world, there is a discussion between, like, the Washington consensus, there also is, like, a Beijing consensus, even though the definition of the Beijing consensus is different among various experts, I believe. I wonder--but given the experiences in Korea or other--for tigers in Asia or ASEAN countries or even including Japan, I think there might be a big role that government can play, although the market is a kind of driving force of the economic development.So, I just would like to know your view about the role of government and how you rely on the developing partner countries governments for pursuing the World Bank development assistance.DR. DERVIS: Thank you very much. We'll take two more questions. Yes.QUESTION: Hello, I'm Nilmini Rubin, I'm with the Information Technology Industry Council and I previously worked for Senator Lugar on the staff of the Senate Foreign Relations Committee and campaign for transparency and anticorruption reform as related to the development banks and I was intrigued by your comments about social accountability. I was wondering if you could tell us more about your goals for that and what you envision the structure to look like and how you expect the social accountability arm to interact with the private sector and civil society?DR. DERVIS: And one--Antwon [ph].QUESTION: Antwon Zanakman [ph] a former World Bank and IFC staff member and I've been investing in emerging markets. I have a question on the social safety net that you mentioned very prominently, I think, as a theme. What is the evidence that it has buffered crises and is there also evidence that it sometimes has delayed the response or the recovery?DR. DERVIS: All right. We'll take these three, each one of them a big subject in itself.DR. KIM: Yes, yes, yes.So, in terms of the role of government, I think one of the things, again, that I'm learning as I walk the halls of the World Bank is that I hear repeated again and again, there is no one-size-fits-all solution, and I think the Bank at one point has been criticized for taking that position.So, in terms of the role of government, I think every country is a little bit different, and I think there's no question that there is a role for government, even in setting up an environment where private sector investment can be enhanced. But I think the most important answer to your question is that the Bank now prides itself on taking every country on its own terms and not making any across-the-board guidance or recommendations about the role of governments or markets. I mean, this is very important that everyone understand. The Bank is different now and it's evolved--I would say it's evolved as much or more than any institution I've ever seen in terms of the way it works in individual countries.In terms of social accountability, this is very new and I don't know very many details about the particular social accountability program that I mention, but it's one that Sanjay Pradhan in the World Bank Institute is heading up, and it is really significant in the sense that, for a long time civil society organizations were outside the door at the World Bank meetings, and Jim Wolfensohn, one of his great legacies, is that he brought them inside the door.And now, I think this sets us up for a partnership with civil society organizations that is just much more advanced than I think every before.And of course, the intension is that our engagement with civil society will increase over time.In terms of the evidence of social safety nets, I actually don't know, and if you do, I'd love to hear--I don't know, either. I don't know, either. But I can tell you this: In walking through today the Middle East and North Africa Unit of the World Bank, there are pictures all over the unit that are from the Arab Spring, and they are very beautiful, poignant pictures about what happened. And so, the notion that that would happen in the states that it happened is something that we couldn't have imagined.Now, I worked in Peru, and I worked in Peru right after some of the shocks, and I was there witnessing just enormous social movements. There was one in particular called the Comedores Populares, the popular soup kitchens. And so, in Peru, it's sort of been a part of the fabric, the social fabric, for a long time, but no one would have guessed--no one would have guessed--that it would have happened in those countries, but it did. I think it sends a message to everybody, that if you don't focus on inclusion, if you don't have these safety nets that will protect people from, for example, a catastrophic illness that just sends an entire extended family into poverty--if you don't have these social safety nets, if you are at risk, that is the message that everyone has gotten, whether there has been some sort of specific study, I'm just not aware of it, but inside the Bank, I can tell you that the lessons of the Arab Spring have been very strongly taken, and it suggests to us that one of the things that we can do to add value in just about any country is to do an assessment of the public sector expenditures that one is engaged in and to say, "Well, you know, actually, you're not getting much value from, for example, fuel subsidies, but there are other"--like these conditional cash transfer programs, that can have an enormous value. And so, that's what the Bank has to do.We are not going to come in and dictate to any particular country what you should do, but what we can do is to say, "Boy, there's a lot of evidence that this form of social protection is going to give you much more value than this other form of what you might think is social protection.DR. DERVIS: Yes.QUESTION: Thank you for coming here. There are a good number of people from the Bank who are working now in Brookings. So, these are [unclear]. I spent 20 years in the Bank. We all love the Bank.Now, you just spoke about the social part of the Bank, the need to base Bank policy on evidence. The Bank has a longstanding problem, has an eminent DEC, which is economic research, has no department, no unit specialized in doing systematic social research and producing the evidence for social policies for basic policies and program on evidence.Second issue which concerns many of us is one of your predecessors, Jim Wolfensohn--also Jim--spent two terms to build many things at the Bank, one of which was a central Vice Presidency for Environmental and Social Sustainability Development, which was in charge with crafting Bank policies, safeguard policies to which you just referred. Well, it happens that the immediate successor to Jim abolished one Vice Presidency from the 25 the Bank had because there were too many and he found to abolish exactly the Vice Presidency focusing on social policies, elaborating the social policy of the Bank and the environmental policies.So, at this time that staff was moved for instance in information, there's a good job there, but there's operational work, and interpreter has no nerve center to develop further and update the Bank's social policies and the environmental policies which are the big demand. Do you have any intention to [unclear]?DR. DERVIS: Okay. Thank you. Yes.QUESTION: I'm Lawrence McDonald from the Center for Global Development. Thank you very much for your remarks and congratulations on becoming President of the Bank. My question concerns the scope for the World Bank to become more active and effective in addressing problems of global public goods. Many of the problems that confront poor people in developing countries are problems with the global commons. Climate is just the most obvious, but collapse of fisheries, emerging diseases, and yet the Bank's primary instrument of course continues to be country loans.Do you see an opportunity to seek a mandate to become more active addressing global public goods problems and would that require a new instrument or do you already have the instruments that you need? Thank you.DR. DERVIS: All right. There's one gentleman there. Yes.QUESTION: Thank you. My name is Desi Esaronai [ph] and I work with the Institute for Development Policy. It's a CSO based in Pristina, Kosovo and my question to Dr. Kim--it's a great pleasure, actually, to be here and listen to you. Congratulations on the post. My question has to do with the role at the World Bank you see should be taken in terms of developing energy projects worldwide.Now, I'm sure you're very well aware of the social environmental costs that relates to many energy projects around the world, and the reason why I'm putting these questions forth right now is because the World Bank is, at this stage, considering a project in my country, in Kosovo, to invest in lignite and build a new lignite-based power plant and we have, as a civil society organizations in Kosovo, we try to be as loud as we could that that probably is a bad idea because of all the social and environmental and also economic reasons, as well, and we have worked with many people who have also worked in the World Bank and just recently left the World Bank and one of them is Dr. Daniel Kammen of UC Berkeley, who was a chief renewable and energy efficiency technician there and who now publicly is also calling the World Bank to drop the idea of still investing in lignite in the third world country which Kosovo is and it's getting the IDA money for this project now. The project hasn't been yet done. I don't want to be very specific because I know it's just your 17th day in your office and you probably don't all the aspects related to it but I would really appreciate to know what path do you see the World Bank should take in terms of investing in the energy in the future and do you see that it should that it still be investing in lignite in a country such as Kosovo? Thank you.DR. DERVIS: All right.DR. KIM: Easy ones.So, I'm not really familiar with what you're talking about, which department was eliminated, but we have a very active--in fact, the largest group, VP, Vice Presidential Unit in the Bank is the Sustainable Development Network. It's headed by a wonderful professional named Rachel Kyte who came to first the IFC from environmentally focused NGOs. So, there is quite a bit of research going on. We have a huge investment in our Sustainable Development Network and that will certainly continue.In terms of the global public goods, again, on my 17th day, we're having these conversations. I'm not sure exactly whether we need new instruments or not but I can just tell you this: We just had a presentation to the Board on the Rio+20 meetings and Rachel and our Sustainable Development Group were very involved in that meeting. And interestingly, many of the most interesting discussions happened really outside of the main meeting with CSOs and NGOs, and I think really in--as part of a shift that's been occurring over time, the World Bank was right in the middle of those discussions. And so, our commitment to global public goods is very strong.Now, the social accountability arm, the instrument that we're just building, is increasing our ability to work directly with civil society organizations. Are we going to do more of that in order to be able to really have a broader impact on global public goods? I certainly hope so.My understanding of global public goods has been from my global health background. Tuberculosis crosses borders, the epidemics that cross borders, and you absolutely need global mechanisms to deal with those problems.I think our Governors, the Board and the Governors, expect the World Bank to play a very large role in climate change issues and other environmental issues and trying to make contributions around global public goods. We'll simply have to figure out over time the best mechanisms to do that. The commitment to it is there. The notion that we need to reach beyond the traditional mechanisms, work with civil society organizations, get outside of the standard ways that we've been doing business before, I think we're already there.In terms of Kosovo, well, you can imagine these are very difficult questions, and we--energy is a critical part of boosting prosperity and eradicating poverty. We talk about this all the time with relation to Africa. We know that we want more private sector investments in Africa to create the kind of jobs that are needed in Africa, but if you don't have access to power, it's impossible for that kind of development to happen.So, there are differing views within the World Bank Board. There are differing views about this tradeoff between our need to keep the environment clean and poor countries' need for energy.So, I would simply say, this is part of my new job in my new experience in trying to deal in a multilateral organization where people have very different views. One group will say, "We must protect the environment." The other group will say, "But wait a minute, you also use coal." And they say this to the wealthy countries: "You also use coal and you fuel your development on the basis of coal. We simply want to provide power to our hospitals. We want to provide lights for the schools. We want to provide energy so that the private sector can develop. We need to do that."Now, our standards on clean energy are very high. Our efforts to develop clean energy projects is also as high as it can be, but we're dealing in a complicated world where you have these competing demands for energy for development versus our desperate need to keep the environment clean.Look, I've been trained in science, and I think I'm actually the first one trained in science to be President of the World Bank, and so I have to tell you that the data that I'm seeing about changes that are happening today that we didn't think would happen for three or four years, the impact of a one-degree rise in the temperature of the oceans that we didn't think would happen until we got to two to three degrees' rise in the temperature of the oceans, this is extremely disturbing to me, and I think we have to put the science of climate change in front of all of our member countries. And I guarantee you that I will do that. But having said that, you should also know that there is a need for energy to lift people out of poverty and boost prosperity. And so, we're going to be constantly having to balance those needs and those interests, and that's part of my job.DR. DERVIS: Okay. We'll take quick--but please, because we're running out of time--quick three questions. First one here, yes.QUESTION: Thanks very much. I'm Garret Mitchell and I write The Mitchell Report and I want to ask a question that's slightly off subject, not about the work of the Bank itself but because I notice you're also an anthropologist, about its culture.About 10 years ago, I happened upon to a book called the Springboard Story, by Stephen Denning, which talked about the use of springboard stories to create knowledge management system at the World Bank. And so, my question is twofold:One, is the knowledge management system at the World Bank alive and well and an operating part of your mission delivery process?And second, does the concept of the springboard story play a role currently and into the future of the Bank communicating its mission and delivering on that mission?DR. DERVIS: Yes, gentleman all the way in the back there. Succinct please? Okay.QUESTION: Okay. Thank you, Dr. Kim. My name is Deng Wi with China Review News Agency. What role do you expect for China to play in the World Bank and the international financial system and do you support to further increase the voting share and more say for China and also other emerging countries? Thank you.DR. DERVIS: Thank you. All right, well, I'm going to try to create some balance. Yes, to you--sorry. Maybe very quickly we'll allow you to be the last, okay? But yes, the lady there. Right. The gentleman at the back was trying very hard for a long time. So, I can't pass him by.QUESTION: Hi, my name is Katie Malouf with Oxfam International, and I was interested in what you were saying about inclusive growth being one of the four challenges that we all face in global development. And I wanted to know to what extent do you see investments in public education and health systems as being central to realizing inclusive growth? And also what do you think is the most important contribution the World Bank can make to achieving universal access to basic health services in developing countries?DR. DERVIS: Thank you. And the last question now. Yes?QUESTION: Thank you very much. My name is Juan Irino [ph]. I come from Latin America, Division of the Voice of America. So you have talked about how open of the markets--opening the markets has been very useful in Latin America. I want to, you know--in the last months we have seen how some countries are now going in the opposite direction, closing the markets again. I want to know if you see that as a challenge and also how do you see the role of Latin America in the future years? How is the World Bank going to act, if you have any ideas so far? Thank you very much.DR. DERVIS: Thank you.DR. KIM: Okay. So I don't know the Springboard story but I will get that book and read it. So I would say knowledge management is among the most important things that the World Bank can do, and there have been many efforts to try to do that.I mean, first of all, one of the things we're trying to do is to measure the impact of our knowledge work. Now, again, 10 years ago you'd say that's impossible to do, but actually we're making progress in understanding how to measure the impact of our knowledge. But knowledge management is critical.And so now we're asking ourselves questions like: Well, so how should we get all of the best of the knowledge inside the Bank to every place that we need to be and do it quickly and effectively?I think technology gives us some opportunities, but I think there's also a lot of new insights in how matrix organizations and systems can work more effectively together. So I would just say this is at the very top of my priority list. You know, I'm also the first Bank president to ever have run a knowledge institution before. So I would come to this job with a lot of ideas about how to manage knowledge, about how to make it effective and be present where we need it. But the key to doing that is to have a lot of great people who actually have knowledge, and the good news is we have plenty of those. So now it's really a management task more than, you know, overhauling our staff. We have great staff.In terms of China, China has an extremely critical role to play in the World Bank going forward, as not only as a recipient of loans but as a contributor. China has also been making contributions to the World Bank.In terms of share, this is a very difficult and complicated issue and it's one that our Governors are going to take on again going forward. So, in this particular case of whether or not we're going to adjust shares, as you can imagine, this is a highly lively debate that happens within our Board and among the Governors, and I look forward to participating in that discussion going forward. But, you know, I'm not sure which direction it will go. There are many different ways that it can go. There are many different ways to have that conversation. There are many different way of understanding what share really means. And I think, you know, after two-and-a-half weeks, I don't have strongly formed views about it and I look forward to the conversation.In terms of health and education, you know, both of those areas are critical, and there are two areas of expertise that again are areas that I've worked on in the past. Let me talk specifically about universal access to health care.So next week, we have 45,000 people coming for the International AIDS Society meeting. There have been enormous investments in HIV. But if you go back and look at the stuff that I was saying in 2003 and 2002, when we first started seeing those investments, what I said over and over again is the investment in HIV is our opportunity to really invest in systems. The critical thing about investing in HIV treatment was that for the first time we invested in chronic treatment, lifelong treatment for a disease in the poorest countries in the world. That forces you to put systems together. So I think the debate--I mean the discussion--the discussion is moving in a great direction. What the HIV people are now saying is: Well, what about MDGs 4 and 5? What about, you know, childhood mortality and maternal mortality? What are we going to do to tackle those particular problems? And I think the most important thing is related to what I said earlier: We have to understand this as a systems and delivery problem and not as a disease problem. The aspects of this problem that need to be handled by highly trained physicians are actually quite narrow. The real problems are setting up the delivery systems that can not only protect people from the diseases of today but from the diseases of tomorrow, and there's enough money out there in the world that we can begin moving in that direction. That's how I would like to see the World Bank engage. We are really good at thinking about systems. We are really good at managing processes at a country level, and we're also really good at thinking about how to set up systems that deliver.So wouldn't it be great if we could take all this investment in global health and in every single country build systems? At Partners in Health, the organization I worked with before, every country we've gone into--and Rwanda is a good example--we've gone in and said we're going to take this money for HIV treatment and turn it into primary health care systems. And I think the evidence is overwhelming that it's both doable and cost effective.And the other thing that we've seen that we didn't expect was that once we built those systems, the economy sprouted up around those health care systems and actually contributed to the economic growth of those countries.So, one, health and education are critical to economic development in my view. I think the evidence is very good for that.But also I think the Bank has a very unique and wonderful contribution to make which is to say, "Hey, folks, these really aren't medical problems. They're partly medical problems but the big chunk of it that we can help you with is what's going to give you the long-lasting impact, protect you from future disease outbreaks, and also help to build your economy.And Latin America. So I'm not quite sure I understood the question. Again, let me just say that for the World Bank, again the mantra that's repeated over and over in the halls of the World Bank: There's no one-size-fits-all solution.And in terms of learning the lessons of Latin America, I think that the one of the really remarkable aspects of programs like Bolsa Familiar and Oportunidades is it's that the lessons are being learned everywhere.So, one of my favorite stories is the fact that Michael Bloomberg, the Mayor of New York City, actually flew down to Mexico and was with Julio Frank [ph] at that time, trying to understand how Oportunidades was working and built a program in New York City called Opportunities New York with the notion that these conditional cash transfer programs could have an impact even in places like New York City.So let me just say that the approach to Latin America, both as a place where we still lend money but also as a fountain of innovation that can be useful in all other parts of the world, this is something that we already recognize. You know, the model of social protection that has been pioneered in Latin America now, we're taking to many other parts of the world, and I think that's just the future. You know, I think we have to realize that it may be that it's in the most financially constrained areas where the greatest social innovations can occur, that it's under the pressure of those financial constraints that you really see the great innovations, and we have to be open to it.You know, there's a health care program in Camden, New Jersey run by Jeff Brenner [ph] that's using a community health worker model that we started in Haiti 25 years ago because they know it's--not only is it cost effective but you get better health outcomes in Camden, New Jersey when you use community health workers. I think that's the new world. Lessons are going to come from everywhere. It's not rich countries imparting their lessons on poor countries. The lessons are going in every direction.DR. DERVIS: Thank you so much. There's no way to summarize, and that's not my role anyway, but I have to say that you give us an amazing combination of confidence and optimism, which is so important in a leader, a wide array of knowledge--and the questions were not easy--and, you know, familiarity with so many areas where the Bank is active. I think many of us also felt the enthusiasm you have for the Bank staff and for the people--the women and the men--who are going to work with you, and I think that's key because that, after all, is the strongest resource of the World Bank.DR. KIM: Absolutely. Absolutely.DR. DERVIS: So, I'm very deeply grateful on behalf of this whole audience and on behalf of Brookings, President Talbott--really that you came here and talked to us. I think it's your first talk outside the Bank. We'll be restrained. We won't kind of invite you immediately again, but I really hope that maybe a year or 18 months from now or maybe in Aspen next summer, after one year of experience and, you know, we can have some follow up.We're very grateful. We wish you all the best, and really I think our hearts with you.Please, the audience, remain seated while Strobe will accompany Jim, but let's first thank you.[Applause.][End recorded session.] Show Less -

WASHINGTON DC, July 3, 2012 — New data showing a two-billion cubic meter increase in flared gas in 2011 over the previous year is a warning that efforts to reduce flaring need to be sustained and even... Show More + scaled up, said officials with the World Bank-led Global Gas Flaring Reduction partnership (GGFR).The slight increase in flaring from 138 billion cubic meters in 2010 to 140 bcm in 2011, revealed in latest satellite data, is due largely to increased hydrocarbon production in Russia and shale oil and gas operations in the US state of North Dakota. While not significant when viewed against the longer-term 20% drop in flaring since 2005 — from 172 to 140 bcm — the new increase is a warning sign, World Bank officials said. Gas flaring reductions since 2005 have cut greenhouse gas emissions by a volume equivalent to that emitted by some 16 million cars.“The small increase underlines the importance for countries and companies to sustain and even accelerate efforts to reduce flaring of gas associated with oil production,” said Bent Svensson, manager of the GGFR partnership. “It is a warning sign that major gains over the past few years could be lost if oil-producing countries and companies don’t step up their efforts.”Some of the highlights from the 2011 satellite data on flaring include:Overall, global flaring has increased by 2 bcm, from 138 bcm in 2010 to 140 bcm in 2011.The USA, Russia, Kazakhstan, and Venezuela are the main contributors to this increase. These countries need to step up their efforts in associated gas utilization. The same applies to Iraq.Most of the increased flaring in the USA comes from North Dakota, where there has been an important increase in activity related to shale oil and gas production.Russia still tops the world's flaring countries, followed by Nigeria, Iran and Iraq. The USA is now the fifth flaring country in the world, with some 7.1 bcm of gas flared in 2011.Latest satellite estimates also show some continuous progress in flaring reduction in Nigeria, Algeria, Mexico and Qatar. These countries need to sustain their flaring reduction and gas utilization efforts.“By reducing gas flaring, oil-producing countries and companies are improving energy efficiency and mitigating climate change,” said S. Vijay Iyer, Director of the World Bank’s Sustainable Energy Department. “Instead of wasting this valuable resource, we now need to develop gas markets and infrastructure so the associated gas can be utilized to generate electricity and cleaner cooking fuels.”Inconsistent data and often under-reporting of gas flaring by governments and companies has complicated the global effort to track progress on flaring reduction. GGFR’s cooperation with the US National Oceanic and Atmospheric Administration (NOAA) to use satellite data aims to improve the reliability and consistency of global gas flaring data. This has now resulted in more consistent national and global estimates of gas flaring volumes from 1995 through to 2011.The GGFR, a public-private initiative of some 30 major oil-producing countries and companies, aims to overcome the challenges for the utilization of associated gas, including lack of regulations and markets for associated gas utilization. GGFR partners’ main objective is to reduce the environmental impact of gas flaring, as well as the waste of a valuable energy source.Global gas flaring, estimated in 2011 at 140 billion cubic meters (bcm), also accounts for some 360 million tons of greenhouse gas emissions. Eliminating these annual emissions is equivalent to taking some 70 million cars off the road.Note to Editors:The GGFR partners include: Algeria (Sonatrach), Angola (Sonangol), Azerbaijan (SOCAR), Cameroon (SNH), France, Gabon, Indonesia, Iraq, Kazakhstan, Khanty-Mansiysk (Russia), Kuwait Oil Corporation, Mexico (SENER), Nigeria, Norway, Republic of Congo, Qatar, the United States (DOE), Uzbekistan; BP, Chevron, ConocoPhillips, ENI, ExxonMobil, Marathon Oil, Maersk Oil & Gas, Pemex, Qatar Petroleum, Shell, Statoil, TOTAL; the European Union, the European Bank for Reconstruction and Development (EBRD), the World Bank Group; Associated partner: Wärtsilä. Show Less -

I am honored to assume the Presidency of the World Bank Group. I do so at a moment that is pivotal for the global economy, and defining for the World Bank as an institution.The global economy remains ... Show More +highly vulnerable. We need to boost confidence in markets and within the private sector. And we need to boost confidence among citizens that our economic system and policies can deliver more sustainable, fair and inclusive economic growth.As a global development institution, the World Bank has an economic and moral imperative to help address risks to global growth, no matter where they emerge. A strong global economy benefits all countries; a weak global economy makes all countries vulnerable. It is urgent that European countries take all necessary measures to restore stability because their actions will impact growth in all regions of the world.Over the coming months, I will be engaging closely with clients, partners and my colleagues in the Bank Group to take stock of the challenges ahead and ensure that the Bank’s strategy is suited to supporting our member countries’ needs.Already, however, several priorities of our work are clear.My immediate priority will be to intensify the World Bank’s efforts to help developing countries maintain progress against poverty in these volatile times.I will work with our clients and partners to ensure that we are creating a new economic firewall: one that protects people in developing countries against shocks. I know from my work in poor communities around the world that, when a crisis hits, and no safety net is in place, the effects can be devastating. The World Bank substantially increased its lending during and after the global financial crisis. We must continue to build more effective and sustainable ways to ensure citizens have basic income protection, and access to education, healthcare and energy. This is also critical for strengthening domestic demand because when people have basic security, they are empowered to be creative and tap their full potential.While short-term crisis management and social protection are naturally a concern in these times, we must capitalize on the opportunities that lie beyond the horizon. Despite the volatility, we must remember that the world has unprecedented resources, knowledge and experience at its disposal. If the international community can use these effectively, we can achieve within a generation goals that for centuries have been a distant dream. We can reduce poverty to levels never seen before, and usher in a time when the majority of the world’s people will be part of a global middle class, enjoying better living conditions and greater opportunities. We can help create the next set of emerging markets, especially in Africa, that will drive global demand and growth. We can accelerate inclusive growth and social progress in places where development has not yet taken hold.The World Bank is uniquely positioned to assist countries build longer-term development strategies through its lending, knowledge and expertise. The World Bank will continue to partner with countries to make smart investments in people, infrastructure and institutions in a fiscally sound and sustainable way. Through the IFC and MIGA, we will continue to support the catalytic role of the private sector, which accounts for almost 90% of jobs in the world. Drawing on the experience of its global shareholders, the World Bank can broker solutions on transnational challenges.Public trust and confidence are invaluable assets for governments and institutions. The Bank Group is already active in promoting transparency in public finances and strengthening governance. This is an increasingly important area of engagement because it drives confidence and decision making amongst investors, businesses and households.I believe the World Bank’s best days are still ahead. The economic success of emerging market economies, the rise of citizen power led by young people and the unprecedented penetration of new technologies are challenging old development paradigms. Thanks to the leadership of Bob Zoellick, the World Bank has moved toward becoming more open and has embarked on an innovative modernization agenda. Strengthening its leadership as the premier development institution will mean continuing to adapt to a world that is changing profoundly.Together, with partners old and new, we will foster an institution that responds effectively to the needs of its diverse clients and donors; delivers more powerful results to support sustained growth and help governments to become more accountable to citizens; prioritizes evidence-based solutions over ideology; harnesses and attracts the best talent; amplifies the voices of developing countries; and draws on the expertise and experience of the people we serve.A central part of my responsibility in the next five years will be to ensure that the Bank’s distinctive strengths are aligned with the needs of a world in transformation and transition. Show Less -

MR. MILLS: Good afternoon, everyone. Thanks for joining us for this roundtable. My name is Richard Mills. I know many of you; welcome. ... Show More + I want to set up a couple ground rules to begin with. First of all, we're going to have this session embargoed until the end of the session, so that should keep all the--maybe some of the hurried typing down to a minimum. The other thing I would just ask is that you--when we call on you, just repeat, for the record of the transcript, your name and organization, and then we can go into questions. I handed out a statement and I will turn it over to President Kim. President Kim?MR. KIM: Well, thank you very much for coming and I want to welcome you here. I'm taking over at the World Bank at a pivotal moment, as we said, and we're very encouraged by some of the things that we saw over the last two weeks, what happened at the G20 meeting, the commitment of middle-income countries to continue lending to the IMF at levels that were very encouraging. Also, what happened this past Friday in moving toward a stronger financial and banking union in Europe was all very encouraging. Our mission here at the World Bank is to boost prosperity, especially in low- and middle-income countries, and to eradicate poverty. We have just an outstanding staff. I've been working in developing countries all my life and have known from the ground just how outstanding World Bank staff are. We are prepared to continue the dual mission of boosting prosperity in the world and eradicating poverty and to do so with great energy, especially in this very difficult time. And let me just stop there and ask for questions.MR. MILLS: Okay. Anyone who has any questions? Danny? DANNY XUFENG: Thank you. Danny Xufeng from China Xinhua News Agency. Thank you for all [unclear]. President Kim, today you are in a World Bank tie – a green tie – and you are the first non-Wall Street banker and non-Washington politician to run this agency. How would your background help you to continue modernizing this global agency in this multi-polar world, and [inaudible] your predecessor, will your Chief Economist will also be from a developing country? Secondly, to some observers, you are a good golf player. In your golf bag, you have a “putter” of global and medical experience. But how would you improve your [inaudible] in managing such a big agency as well as [inaudible] of tackling economic and trade issues? Thank you. DR. KIM: Wow. Just a few things. Let me just say that I bring two relevant experiences to the World Bank. First, I've been working in development all my life. I've actually had extensive experience with World Bank employees in the field tackling difficult problems. And so, I feel I share the passion for development and poverty alleviation with the World Bank staff. I come into the organization feeling very close to them in terms of why they came here. I've heard over and over again from World Bank staff that I've met over the past few months, we came into this institution because we have passion for development. I share that with them and I think that's important that the World Bank President has worked on the ground on the issues, many of the issues, that the World Bank tackles.Secondly, many people have noted that the World Bank's greatest contribution may be as a knowledge institution. We have a combination of experience on the ground, and that experience on the ground isn't just being in developing countries, it's actually investing, not only with governments, but in the private sector. So, the World Bank has people who have actually experienced doing projects, bringing resources to the ground. Secondly, the World Bank has enormous amounts of data and information. Let me just take a moment to thank my predecessor, Bob Zoellick. I mean, his openness initiative was revolutionary. It's leading the way for all multilateral organizations to be more open, and I welcome that. It's critically important. It's time to do that. So, we have more data than any other institution about development. Moreover, this is like a huge academic institution. There is a tremendous amount of research and analytical firepower in this organization. So, this combination, on-the-ground experience, data, and analytic capacity is unique to the World Bank. And so, having come to this job from a knowledge institution now helping to run a knowledge institution that has the capacity and has a history of providing critical information where it's needed, I feel that those things have prepared me. Now, as for your golf metaphor, I don't think that there's anybody except maybe Tiger Woods and a few others who do everything well, and the history of this institution is that people have brought to the institution certain experiences and expertise. Let me say that, in my--in the last few months, I have been just extremely impressed with economists, development experts, sociologists, others who are in this institution who bring a huge variety of expertise that will be very helpful as we go forward. So, I certainly don't bring absolutely everything--one of the tools that you might want. On the other hand, no one does, and I feel very confident in our staff, in our leadership, to be able to deal with all of the critical problems that we'll face. Thank you.MR. MILLS: Howard. MR. SCHNEIDER: Howard Schneider, Washington Post. Thank you for doing this. A couple things: First off, on this sort of nuts and bolts of transition, I wonder if you can sort of give us a sense of what you've been doing the last two weeks and specifically who you've been relying at U.S. Treasury, whether you're bringing folks from Treasury over with you to Bank staff. And secondly, you know, one of the things that when you look at President Zoellick's comments over the last year, it's clear he's been very, very concerned with conditions in Europe, and I'm wondering whether you have come to share his concern about that as it might affect the developing world, or whether you feel the Bank's mission really is more on sort of longer-term, systemic, development-type problems rather than the euro crisis.MR. KIM: So, a couple of things. The transition has been run by the President's office here, but also I've been working very closely with people in U.S. Treasury who were working with me during the campaign. So, this is an enormous amount of--this is a huge organization and so there's an enormous amount of information to digest. So, what I've been doing is meeting with almost every single one of the Vice Presidents. I've had multiple meetings with the Managing Directors, with the CFOs. So, over the past two months, what I've been doing mostly is meeting our leadership. So, I can tell you that I'm just extremely impressed with the leadership of the World Bank. Many of them have been in the organization for years and years and years. And again, what's been most exciting is that every single one of them have come here because of the mission. So, I've been reading lots and lots of documents in preparation for the G20. Of course, there were a tremendous number of documents, many of them prepared by World Bank staff, and I've been going through them. Now, in terms of our specific position, President Zoellick brought a series of extraordinary experiences and an expertise to the Bank and I bring, frankly, a different set. So, am I concerned about the euro zone crisis? Of course. I talked about it a little bit in the beginning. I am encouraged by what happened over the past two weeks, but we are monitoring the situation very carefully. The primary mission, I think, of the World Bank in this crisis is to make sure that low- and middle-income countries are protected. Since 2008, we have invested over $300 billion to support lower- and middle-income countries to weather the crisis. So, what are the things that we do? We make sure that children can stay in school, we make sure that health clinics stay open. We've done a lot of work on food security and not just in terms of providing food in times of crisis, but moving toward more sustainable approaches to agricultural development. So, the primary mission, of course, is to just ensure that global growth continues and that, in the process, we support countries to provide basic services that everyone needs. Often, what happens in crises is children get pulled out of school, health clinics close. We've done a lot to make sure those things do not happen. MR. SCHNEIDER: And anybody from Treasury coming over to your staff?MR. KIM: Yeah, well, we—Navjet Dhillon who was a former Bank employee and had worked with Jim Wolfensohn among others had been at Treasury for a while and, with his experience at the World Bank, he'll be joining me in my office.MR. MILLS: Okay, any other questions? Lesley? MS. WROUGHTON: Hello, Lesley Wroughton, from Reuters. I want to get back into the issue of we see today manufacturing in Europe going down, China going down. We've already seen effects on developing countries through trade finance and a tightening of Bank flows. When Mr. Zoellick came in, he immediately increased funding to countries and said that's the way to stop it. I was wondering how the Bank would be positioned currently under the finances to move quickly and to move with such big amounts to help countries if there is this extreme worsening of global conditions. We know that the World Bank's finances may be declining over the next few years. So, the question is, how do you raise resources like that? One of the issues has been raising finances through the World Bank actually offering its services to developed countries, i.e., Greece. I was wondering how your feeling is about that.MR. KIM: Let me say, we've been having lots of conversations about the financial strength of the World Bank, and what I've found is that the Bank is in a very strong position. We've had, over the last few years, a successful IDA replenishment, we've had a capital increase. Bob has done a great job in putting the Bank on very solid ground. Now, we feel prepared to tackle crises as they come forward. Now, of course, it all depends on the scale and the severity of the crisis, but the World Bank is in very sound financial footing. Now, in terms of our work in high-income countries, as a person who has been focused on how to tackle social problems in developing countries my entire life, I am very impressed with the quality of our staff and the range of insights we have on everything from fiscal policy, getting--understanding macroeconomic trends and getting fiscal policy right from country to country to health care to education, all the way down to our International Finance Corporation has been very effective in investing in the private sector in developing countries. So, all the way from fiscal policy down to investments in the private sector, I am very impressed with the expertise that we have of, could that be applicable and useful to high-income countries as well? I think so. Now, you have to understand that we only go into countries when we're asked, but I feel the kind of expertise we have could be relevant in many, many countries in the world, including high-income countries. MS. WROUGHTON: So, you're not ruling out if Greece or the EC asked you to, that you would move--you would go--you would happily help Greece.MR. KIM: Well, I've talked to our staff--and again, my job as a leader is to really understand our staff, our capabilities and what we can do. And my staff feel that they have relevant experience that could add value. And if that's the case, and if we were asked, I would be open to the possibility. IKKI YAMAKAWA: Ikki Yamakawa with Asahi Shimbun. So, [unclear 14:25] little country and the [unclear], emerging countries that are hoping to increase their involvement and contribution, both in power [unclear]. How are you going to [unclear]? And also, secondly, I want to ask you about, you know, [unclear] should come from [unclear] and also how--do you have any will to increase the transparency of the election process within five years of your term?MR. KIM: In terms of middle-income countries and the lower-income countries, you know we are very much involved in both, middle-income and lower-income countries. Our commitment to supporting the lower-income countries through IDA grants and loans and also with expertise. And, in fact and increasingly, the IFC has been making more and more private sector investments in the poorest countries. So our commitment to lower-income countries is unshakeable. Of course, it's a primary part of why we exist. But in middle-income countries, I think it's important to know that more than two-thirds of the people living on less than $2 a day live in middle-income countries. Our mission is about eradicating poverty, so we must remain engaged with middle-income countries. Moreover, in working with middle-income countries, we are learning again so much about how to tackle the most difficult problems, and so we will remain engaged in both, and I think there are very good examples of how we've had successful work in both. Let me just say something about the election. So I was very proud to be part of the first contested election in the history of the World Bank. Issues of share and voice in/and election, these are issues that I look forward to discussing with the Board and with the Governors. These are very important issues and ones that affect all member countries, and it's not for me to decide as President how this will happen. These are issues that will require full discussion, and I look forward to those. JEREMY TORDJMAN: Hi. I'm Jeremy Tordjman. Before leaving office, your predecessor, Mr. Zoellick cancelled a loan made to Bangladesh and I was wondering if you would think that is it an appropriate way to address some of the critics made to the WB especially about corruption.MR. KIM: I've been following the situation closely, and Mr. Zoellick and the senior staff have informed me fully about the decision. The Bank has a sterling record in fighting corruption. The Bank was the first to raise the issue of corruption in the 1990s and has a no-tolerance policy for corruption. The discussions with the government of Bangladesh started in September. Even toward the very end, there were extensions given so that there would be what we would think of as an appropriate response; and not seeing one, we cancelled the bridge project. Now, we're very concerned about the well-being of the poorest people in Bangladesh, but what I must stress is the Bank's position is that we do not tolerate corruption. JEREMY TORDJMAN: Do you think it was appropriate?MR. KIM: Yes. I do think it was appropriate.MR. MILLS: Any other questions? Yes, sir. KAZUHIRO HARUKI: Hi. My name is Kazuhiro Haruki, Kyodo News [unclear]. And Tokyo will host Annual Meetings in October [unclear 18:45]. How [unclear] Annual Meeting and what is your expectation for Japan [unclear]?MR. KIM: So, I'm very much looking forward to my visit to Japan. As you may know, I visited Japan during the campaign and had a wonderful meeting with the finance minister and other leaders there. I have--we're preparing for the meeting. I think it's going to be an important meeting at an important time. I know that Japan has been a very strong supporter of the World Bank from its inception, and we value Japan as a member country very, very much. I think it's important that my first meeting, in fact the first annual meeting, will be held outside the country. It's part of a tradition here at the World Bank, and I think it's an important one.MR. MILLS: Sandrine. SANDRINE RASTELLO: Sandrine Rastello with Bloomberg. So, besides Japan and that trip for the Annual Meetings [unclear], do you plan to get personally involved in certain projects like the IDA replenishment or do you have a planned visit to your [unclear]? And my second question there's been a lot of talk about the World Bank doing too many things and not finding, you know, what it is as an institution. Do you plan to refocus the Bank or do you plan to continue being involved in everything from the environment to education and [unclear 20:28]?MR. KIM: Let me say, I am very--I'm a practitioner, a development practitioner, and I have been for most of my adult life. So, I'm going to take great interest in a wide variety of projects that we work on, and I hope that I can help in the success of some of these projects. In terms of focus, one thing to remember is that we are very much a client-driven organization. In other words, we have to respond to the priorities and the aspirations of our member countries, and that [is] a critical piece of our work going forward. Now, having said that, I think it's also very important to have strategic discussions with not only inside the Bank among our staff but with the Board of Directors and the Governors. These are important questions about where the Bank should focus its energy, where the Bank brings the most value, and how we can organize our activities going forward. So, I think it's critical to have strategic discussions but also critical for us to be responsive to the aspirations of member countries.MR. MILLS: Yes, sir. MR. FERNANDEZ: [Unclear] Fernandez from the Spanish newswire EFE. I wanted to know your views about Latin America, the [unclear]. How can the World Bank help the region?MR. KIM: As you may know, I have worked for many years in Latin America. I've worked in Peru and Chiapas in Mexico. Also visited many, many countries and worked technically on health-related issues. So, I think it's remarkable that the resilience, as you said, during the economic crisis was remarkable and also very encouraging. I think that the support for the poorest countries, of course, will continue through IDA and other mechanisms. But I think it goes back to the issue of high-income countries and what our role might be in some of the high-income countries. There are many situations in which what our member countries want most of all is our technical expertise, and, you know, there are so many sources of capital these days in the world that we know that often that's not going to be our role but that our role will be to provide technical assistance.We have learned an enormous amount from countries like Mexico, for example. Mexico's experience with conditional cash transfers, the expansion of that program in Brazil. These are important lessons for many countries in the world. And so we will continue to engage deeply, of course, in Latin America, the poorest countries through IDA. And the middle-income and emerging countries, we both will provide technical assistance but also look forward to learning from them as they have weathered the last few years.MR. MILLS: Yes, sir. I think we'll take our last question. Okay. I'm Gwang-ik Jang of Maeil of South Korea. There was--you mentioned Korea's success story as a model of success with [unclear]. How does the experience of Korea's economy's success affect your ability to carry on the World Bank [unclear]?MR. KIM: Well, I think, on a very personal level, when I came to this country, many people thought that Korea was--and the word that was used was "a basket case"--impossible for Korea to develop. And the reasoning was--seemed fairly clear: no natural resources. Even--there was even talk of Korea having cultural deficits so that they couldn't develop. And so now, look what happened. What it gives me in tackling this new job is an unshakeable optimism that any country can go down the path of development, and so I bring that optimism with me every day to work. I spoke about it today at a meeting with staff. I think for those of us who are fortunate enough to work in an institution like the World Bank, every day we walk through the door and we read on the wall "Our dream is a world free of poverty," I think that it's critical for every single World Bank employee to bring with them every day the sense of optimism, that no country is a basket case, that we have to work with every single country to try to help them down the path of development, just as--that's been my experience, and I feel that deeply in my bones.MR. MILLS: Okay. We'll take one last question from Jeff.JEFF: Jeff from Financial Times. If I could pull up on a previous question [unclear 25:49] for a bit more. You said that the Bank now has a very strong financial capital position. Is the Bank in position to accelerate lending if, in fact, the global economy does go into a much deeper, prolonged downturn as some of the recent indicators are indicating. And if it is in that position, is that something that you will consider doing or are considering doing [unclear 26:09]?MR. KIM: So the financial position of the Bank, as I said, was very strong. It--you know, this is my first day and it's one of the things that we're going to be talking about. We feel that, especially in lower-income and middle-income countries, we are ready to respond to support those countries.And let me clarify an earlier comment when asked about Greece.We're not talking about the World Bank investing massive amounts of finances in higher-income countries. I think where we feel like we can add value is in the technical support around some of the structural issues that some countries are facing. And so for lower-income and middle-income countries, we're prepared; we're ready to support countries as needed, and of course, as I said, we are monitoring the situation very carefully, and we'll respond as countries come to us to ask for assistance.MR. MILLS: Very good. Thank you all very much. Show Less -

Working with others we've launched an Open Data for Resilience Initiative, a global effort working in 25 countries. An example is haitidata.org, which makes risk assessment data produced followi... Show More +ng the 2010 Haiti earthquake available for anyone to download and use.Similarly, Open Data for the Horn of Africa now facilitates open access to geospatial information, data and knowledge sources about the ongoing response to the drought in the Horn of Africa.My point is simple: Farmers, fisher folk, and others around the world are using data and technology everyday to deal with increasing uncertainty brought on by climate change. In Nepal they are using PDAs – computers that fit into the palm of your hand - to collect data regarding changes in food security situations. In Chile, farmers can use low-cost mobiles to receive SMS messages about weather forecasts, market prices and even the latest cultivation practices.In India, fisher folk can use mobile phones to receive messages about weather forecasts, optimal fishing zones, and market prices. And in Laos, Cambodia and Vietnam, mobile phones are used to collect data for flood forecasting and forwarded to a central early warning system, with the information then sent out via traditional media.The Search for Solutions – Engaging and Empowering YouthSo that's the technology part of the transformational combo. Where do youth come in?You are the ones who can think out of the box. You are the ones who can take convoluted conference communiques and begin to make them real, not in conference rooms where agreements stumble or disappoint, but on the ground, and in local and virtual communities around the world.And your numbers are growing. In Africa alone, 70 percent of the population is under 30. And there are already more than 400 million cell phone users. That transformative combo of technology and youth is not tomorrow's world. It’s today.Connect4Climate initiativeThe Connect4Climate initiative – also one of the sponsors of tonight’s event – is using the power of partnerships, participation and social media to include the voices of local youth in the global climate change conversation.With a coalition of more than 140 partners and a Facebook community of over a quarter million, Connect4Climate is reaching out to young people – to listen, acknowledge, and respond to their ideas, to help amplify their voice. Across multiple social media channels, Connect4Climate reaches up to 6 million users each week.In the run-up to the UN Conference on Climate Change in Durban last December, Connect4Climate used a combination of social media and a photo and video competition to getAfrican youth aged 13 to 35 to tell their personal climate change stories through photos and videos.340 rural young people in Somalia were trained on climate change and its effects on agriculture, energy, forests, gender, health and water. They were given cameras to document how climate change has affected their lives and these photo stories depicting deforestation, drought, and health issues were entered in the C4C Photo/Video Competition.Youth from all 54 countries on the African continent participated – they want their voices – and their stories – heard. And we need to listen.ConclusionLadies and gentlemen, As the global population heads toward 9 billion by 2050, decisions made today will lock countries into growth patterns that can sustain or destroy our future.We know that economic development during the next two decades cannot mirror the past two: poverty reduction remains urgent, but growth and equity can be pursued without relying on policies and practices that foul the air, the water, and the land. The powerful combination of technology and people power can help us avoid the pitfalls of the past.Over the course of this evening you will hear from others on what they are doing to “swing into action”! It’s an impressive catalogue. Enjoy! Show Less -

WASHINGTON, June 28, 2012 – A software application developed in Argentina that teaches about energy consumption, climate change and the actions needed to reduce carbon emissions took first place in th... Show More +e World Bank “Apps for Climate” competition today. “Ecofacts” was one of 14 finalists from around the world that were celebrated tonight at the Connecting for Climate event at the Newseum in Washington, DC.“From carbon calculators and classroom tools to new ways of visualizing climate data and planning policy responses, the “Apps for Climate” submissions are impressive. These developers rose to the challenge posed by the WB’s Open Climate Data Initiative and have produced some outstanding products,” said World Bank Managing Director Caroline Anstey, who gave the keynote speech at the event.“Apps for Climate” was announced in December 2011 during the United Nations COP-17 climate conference in Durban, South Africa. Developers had until March 16, 2012 to develop and submit their applications, which are now publicly available. A total prize purse of $55,000 was awarded to the finalists.Entries were reviewed by a panel of expert judges, including Christiana Figueres, Executive Secretary of the United Nations Framework Convention on Climate Change; Rachel Kyte, World Bank Vice President of Sustainable Development; Juliana Rotich, Executive Director of Ushahidi; Andrew Steer, World Bank Special Envoy for Climate Change; and Patrick Svenburg, Director, Developer & Platform Evangelist in Microsoft’s Public Sector division.The top three winning apps in the “Apps for Climate” competition are:1st Place: Ecofacts, (Argentina, $15,000). Ecofacts teaches users about energy consumption and climate change, by showing how individual actions can translate into large-scale changes at the national level.2nd Place: My Climate Plan (Norway, $10,000). My Climate Plan allows users to create their own hypothetical national plans for reducing greenhouse gas emissions. The program currently focuses on Norway, but could be adapted for other countries.3rd Place: Globe Town (United Kingdom, $5,000). Globe Town shows how countries are connected globally through trade, immigration, or international assistance, along with country profiles of issues such as energy use and climate adaptation.“Winning the Apps for Climate competition is a great honor,” said Andres Martinez, who took first place in the competition. “Ecofacts is an “open source” project, so anyone can access the source code for use in their own tools, or create improvements. In the future, I hope that Ecofacts will be useful to other developers and users alike.”In addition “CC Climate for Children” from Macedonia won in the “Popular Choice” category, and was awarded $5,000. “Climate for Children” is a collection of interactive classroom presentations and games for teaching climate change issues to students. “ClimaScope,” an app from the United Kingdom that visualizes future climate scenarios for planners and policymakers, received the Large Organization Award.“Solving the problem of climate change requires behavior change. People in all walks of life will need to make decisions based on the best available data,” said Rachel Kyte, World Bank Vice President of Sustainable Development, speaking at the ceremony. “Data collected is just data. But data interpreted and visualized becomes something fundamentally more empowering. These apps have the potential to provide knowledge to those who need it to understand how a changing climate will affect their lives.”“These apps demonstrate the potential of how open data can improve understanding and lead to new insights,” observed Shaida Badiee, Director of the World Bank’s Development Data Group. “For example, one app integrates climate models with open data from the UN Food and Agriculture Organization to show how future forecasts could impact planting and irrigation of major crops around the world.” Show Less -

Kenyan hip hop artist/environmentalist Juliani to kick-off projectWashington, June 28, 2012 – So, what does climate change mean to you? This is the question Connect4Climate (C4C) and MTV will be askin... Show More +g young people from around the world at the launch of "Voices4Climate", a new global photo, video, and music video competition focused on amplifying the voices of youth on the issue of climate change. The launch for the competition will be held tonight, June 28, at an event titled “Connecting for Climate: Technology, Creativity, and Action” at the Newseum in Washington, DC.Creative young people from around the world will be invited to share or sing their personal stories about climate change for the chance to win prizes and receive international recognition at the December 2012 UN Conference on Climate Change in Doha. Music video winners will spend a day with MTV editors in New York or London and have their music videos featured on MTV’s ‘Voices’ platform.“We all have within ourselves the power to be catalysts for change,” said World Bank Managing Director and Keynote Speaker, Caroline Anstey. “This is precisely the idea this competition is getting at. We don’t need - and can’t afford - to wait for others to get things done. Change can begin with just one person – all it takes is you.”"This competition is a great way to use the artistic talents of young people around the world to communicate on such an important issue,” said John Jackson, Vice President of Social Responsibility at MTV Networks International, who will be on hand to kick-off the competition. “MTV is very pleased to be able to encourage entries and to provide creative assistance to the winners."Juliani, Kenya’s tree-planting hip-hop star, who will perform at the event, characterizes his passion for climate change in this way, "When it comes to sustainable development, green economy, those are big words... you have to break them down into something people understand... I do this through my music.” The new competition builds on the success of C4C’s 2011 Africa regional competition. That competition drew over 700 photo and video submissions from every country on the African continent and awarded prizes to 54 winners from 20 African countries. Launched by the World Bank, the Italian Ministry of Environment, and the Global Environment Facility (GEF) in collaboration with more than 140 global partners in September 2011, C4C is a global partnership program dedicated to climate change communications. Through social media and the web, C4C helps to give voice to local stakeholders that have stories to tell about climate change. In just several months, C4C has created a Facebook community of over 286,000 followers that engage in thousands of interactions per day. Across multiple social media platforms, C4C’s weekly online reach is, on average, between 5 and 6 million. Show Less -

WASHINGTON, June 27, 2012 — Robert B. Zoellick today said he would join the Belfer Center for Science and International Affairs at Harvard University and the Peterson Institute for International Econo... Show More +mics in Washington DC after he steps down as World Bank Group President on June 30.Zoellick will become the Peterson Institute’s first Distinguished Visiting Fellow as well as also becoming a Senior Fellow at the Belfer Center at the Kennedy School of Government at Harvard.“I appreciate the opportunity to engage with the scholars and practitioners at Harvard’s Belfer Center and the Peterson Institute for International Economics,” said Zoellick. “I hope to work on the intersection of economics and security, applying history to policy questions of today. Both institutions have been at the cutting edge of research and policy development, and I have benefited greatly from both in the past.”As the 11th president of the World Bank, Mr. Zoellick turned around an institution in trouble in 2007, recapitalized the Bank, and expanded financing for the poorest countries following the food, fuel and financial crises of recent years. He modernized the Bank by making it more accountable, flexible, fast-moving, transparent, and focused on good governance and anti-corruption. He has increased representation of developing countries in governance and staffing and encouraged developing countries to set their own priorities rather than have them dictated from the Bank. His record has also been marked by an increased role for the private sector through the bank’s International Finance Corporation (IFC), which under his leadership has recruited sovereign wealth funds and pension funds to invest in poor countries, especially in Africa.Before his term at the Bank, Mr. Zoellick served as Vice Chairman, International, of the Goldman Sachs Group as well as Managing Director and Chairman of Goldman Sachs’ Board of International Advisors from 2006-2007. Previously, he was Deputy Secretary of State in 2005-2006 and a member of the Cabinet as U.S. Trade Representative from 2001 to 2005.From 1985 to 1993, he served at the Treasury and State Departments in various posts, as well as White House Deputy Chief of Staff. He was the lead U.S. official in the “Two-plus-Four” process of German unification in 1989-90 and served as “sherpa” for the preparation of the G-7/8 Economic Summits in 1991-92.Mr. Zoellick graduated Phi Beta Kappa from Swarthmore College in 1975 and earned a J.D. magna cum laude from the Harvard Law School and a Master of Public Policy (MPP) from the Kennedy School of Government in 1981. Show Less -

New Approach to Financing Innovations in Food Security and Agricultural Development Unveiled at G20 Summit in MexicoAgResults: Innovation in Research and DeliveryLOS CABOS, Mexico (June 18, 2012) – An... Show More + innovative initiative that will enhance global food security and improve the livelihoods of developing country farmers through prizes and other market-based incentives was announced today by G20 Leaders. With a results-driven funding model that rewards innovators for tackling some of the biggest problems in food security and agricultural development, AgResults addresses global challenges in food security and agriculture by generating market-oriented solutions. The initiative aims to achieve significant improvements in the wellbeing of the poor and vulnerable in developing countries with a fund of up to $100 million, to be administered by the World Bank. The governments of Australia, Canada, Italy, the United Kingdom, the United States, as well as the Bill & Melinda Gates Foundation, are supporting this effort. AgResults uses pull mechanisms to encourage innovation through results-based payments such as prizes that are typically paid out when certain objectives or milestones have been met. Such financing mechanisms have seen success in generating innovation and market-oriented solutions in other domains such as healthcare, and AgResults aims to deliver similar gains in global food security and agricultural development.AgResults was born out of the realization that there is a great need for increased investment in global food security and agriculture, in particular from the private sector. The FAO estimates that world food production must double by 2050 to feed a growing world population, while nearly a billion people suffer from a lack of crucial micronutrients in their diet—a hidden hunger that inhibits the development of children and reduces adult productivity. Recognizing these gaps, leaders at the June 2010 G20 Summit in Toronto committed to exploring innovative, results-focused ways of harnessing private sector innovations in food security and agricultural development in developing countries. This commitment involved a two-year effort by committed partners to develop AgResults, culminating in today’s launch of the initiative in support of the Summit priority of enhancing global food security. AgResults addresses this priority directly through new funding and a focus on bringing new, innovative approaches to bear on global food security issues.In the coming years, AgResults will launch a series of pilots that address some of the biggest problems in global food security and agricultural development. The initiative’s portfolio of pilots will represent a diverse mix of agriculture and food security issues, testing different types of pull mechanisms in different regions globally. The initial set of pilots, focusing on maize production in Sub-Saharan Africa, include:Incentivizing the adoption of on-farm storage technology for smallholder farmers;Encouraging innovative distribution of a breakthrough technology to reduce aflatoxin contamination; andBuilding a market for new vitamin A-enhanced varieties of maize.Additional pilots will be explored in the coming years, potentially including livestock vaccines and fertilizer innovation as well as new ideas related to increasing crop yields, decreasing post-harvest losses, increasing livestock productivity and improving nutrition. Show Less -

WASHINGTON, June 14, 2012 – The global financial crisis of 2008/09 has not sent migrant workers streaming back home, despite worsening employment prospects and anti-immigration rhetoric in some destin... Show More +ation countries, says a new book on migration and remittances, published by the World Bank. In fact, migrants may have mitigated some of the pain of the crisis as they tend to work for lower wages, receive fewer benefits and rely relatively little on the state, says the ‘Migration and Remittances during the Global Financial Crisis and Beyond’ book. “During the crisis, remittances continued to provide a steady source of foreign currency to developing country economies at a time when foreign aid remained flat and foreign direct investment declined sharply,” said Otaviano Canuto, Vice President, Poverty Reduction and Economic Management, at the World Bank. Removing restrictions on human mobility may help enhance financial flows among nations and alleviate some of the adverse effect of the crisis, says the book. With migrant workers projected to remit about $399 billion to their home countries during 2012, compared to $372 billion in 2011, remittances are the most tangible link between migration and development. Although many of the 215 million international migrants are facing worsening employment prospects in some destination countries, particularly high-income Europe, their cash support to families in their home countries has remained resilient, posting, in 2009, the only decline in recent memory. Even then, remittances decreased by a modest 5.2 percent, in sharp contrast with the precipitous declines seen in global private capital flows. “The resilience of remittances is good news for developing countries as they remain one of the less volatile sources of foreign exchange earnings, particularly for the less developed countries. At the household level, these cash transfers are, in many cases, the only lifeline for families in the home countries,” said Hans Timmer, Director of Development Prospects at the World Bank. However, despite many years of recording ever-increasing volumes of remittances, leveraging this rather large and growing source of funds for socio-economic development remains a key challenge, with the vast majority of remittances used for maintaining families and for the purchase of consumer goods. The book, which is the first comprehensive study of remittances during the global financial crisis, is a compilation of 45 separate studies that identify and discuss remittance practices across the world and possibilities for the future. Each study is authored by a different expert who analyzes certain countries and certain aspects of remittances, ranging from patterns of remittance flows to usage of remittances received by communities and households. The book is co-edited by Dilip Ratha, Manager of the Bank’s Migration and Remittances Unit; Ibrahim Sirkeci, Professor of Transnational Studies and Marketing at Regent’s College, London; and Jeffrey Cohen, Associate Professor of Anthropology at the Ohio State University, USA, who also co-author the book’s first chapter on remittance flows and practices during the crisis. “Contrary to expectations, we found no evidence of return of migrants, even as the financial crisis reduced employment opportunities in the United States and Europe, with many countries, such as Spain, offering financial incentives to encourage migrants to return,” said Sirkeci. Migration, in fact, was a strategic response to the financial crisis. Like any political or environmental catastrophe, the financial crisis caused human insecurity and people in developing countries responded by crossing borders or moving domestically to survive the impact of the crisis. “Remittances have remained resilient and, barring the decline in 2009, have maintained a healthy growth momentum. However, since the book went to press, the global economy continues to experience serious bouts of volatility, which could affect migrant earnings and, hence, remittances,” said Ratha. For receiving countries, a key factor behind the resilience in remittances is the diversification of migrant destinations. Countries in South Asia and East Asia with many migrants in the United States, Europe and the Gulf Cooperation Council (GCC) countries continued to register increased remittance inflows. One study in the book concludes that only a prolonged global slowdown would cause a decline in remittance flows to India, the largest recipient of remittances in 2011, with $64 billion. In contrast, Latin America and the Caribbean region, whose migrants are concentrated in the United States, suffered a dramatic decline in remittances throughout the financial crisis. Mexico, the world’s third largest recipient of remittances ($24 billion in 2011), saw a significant decline in remittance inflows from the United States during the crisis. A similar strong impact was found in El Salvador. Both cases underline the fact that many Latin American countries were vulnerable to the effects of crisis, with a special impact on the urban youth in these countries, who face more difficult labor market prospects and declining opportunities to migrate. Studies related to the effect of the crisis in the European Union on remittance-receiving countries found that Spain has been the fastest-growing immigration destination for the past decade and is now the fifth largest remittance-sending country, after the United States, Saudi Arabia, Russia and Switzerland. In the East Asia and Pacific region, remittances account for as much as 12 percent of GDP, as in the case of New Zealand and Pacific island economies, while remittances have been keeping the national economy afloat in the Philippines for the past three decades. Also, due to the depreciation of local currencies of many remittance-recipient countries, such as India, Mexico, and the Philippines, migrants from those countries turned to investment-oriented remittances in South Asia and East Asia where goods, services, and assets suddenly became significantly inexpensive and affordable. The book recommends that countries develop policies that reduce restrictions on human mobility and develop programs to facilitate the use of remittances for long-term investments and promoting entrepreneurship. Such changes, tailored to both host and recipient country needs, can strengthen the contribution of remittances to development. Eliminating the complexity of transactions and reducing transaction costs would also help increase the volume of remittances utilizing official channels, to enable many small nations, in particular, to reap the socio-economic benefits of migrant earnings. Show Less -